LONDON—For British companies, the recent volatility in domestic currency and bond markets is compounding six years of extreme disruptions, starting with Brexit and stretching through the pandemic and the fallout from Russia’s war in Ukraine.
Executives say the recent market turmoil has dealt another blow to already fragile business confidence, threatening to crimp future investment and undermine growth in the world’s fifth-largest economy. Late last week, the government unveiled a deep tax-cutting plan that surprised markets—sending the U.K. currency briefly to an all-time low against the dollar and jacking up yields on government debt. The currency has since mostly recovered, but the higher yields threaten to lift borrowing broadly for businesses and consumers alike.
