UK business confidence collapses as fears of ‘stagflation’ grow

Supply chain shortages and price rises could lead to the zero growth and high inflation seen in the 1970s

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Business confidence in the UK has collapsed after a month that has seen supply bottlenecks, rising energy prices, fuel shortages and looming tax increases combine to stifle growth.

In its latest health check on the economy, the Institute of Directors said sentiment had fallen off a cliff" in September, adding to fears that Britain was on course for a dose of 1970s-style stagflation.