NatWest boss: Budget fears have shaken confidence

Warning: NatWest boss Paul Thwaite

NatWest’s boss warned yesterday that business optimism had fallen since the summer as firms worried about the Budget.

Paul Thwaite said uncertainty over Rachel Reeves’ plans, as well as the US election and wider global tensions, were weighing on sentiment.

The chief executive of the state-backed lender said the economy had performed better than expected since the start of the year. However, as households delayed larger purchases, there was uneasiness among companies and signs of hesitation in some consumer behavior.

The warning came as NatWest, which is owned by taxpayers around 16 per cent after the bailout during the financial crisis, reported a better-than-expected third quarter of revenue of £1.7bn – despite the Tory government’s retail share sale plans being abandoned by Labor. quarter profit.

Shares climbed to their highest level since 2011 in early trading before giving up most of their gains to close down 0.6 percent, or 2.1 points, at 363.9 points. Thwaite said trust between businesses and consumers had increased compared to last year. This situation was reflected in the increasing mortgage applications and loan demand of companies.

However, “not all customers feel the same,” Thwaite said, adding: “While discretionary debit card spending on smaller items such as clothing is increasing, we are seeing larger purchases being postponed and consumers saving at a higher rate than before.” -Pandemic.’

Thwaite said businesses were feeling ‘largely positive’ but this varied across different parts of the economy.

‘Some businesses are awaiting greater clarity on issues such as the Budget, interest rate decisions and the results of the US election,’ he said. Thwaite refused to indulge speculation about what Reeves might announce next week.

But he added: ‘What I want to see is a Budget that supports unlocking growth and investment in all parts of the UK, in all nations.

‘This is absolutely what the business world wants to see.

‘The economy has performed better over the last ten or 12 months than many predicted.’

Markets welcomed the results as NatWest halted an earlier trend of savers withdrawing funds to seek higher-interest products.

Customer deposits increased by £2.2 billion to £427.4 billion in the third quarter. The bank said loans increased by £8.6bn.

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