LONDON, Dec 1 (Reuters) – Britain’s Institute of Directors said on Sunday that optimism among its members had fallen to the lowest since the onset of the COVID-19 pandemic, following tax rises in finance minister Rachel Reeves’ first budget on Oct. 30.

Investment plans and employment intentions were the weakest since May 2020 last month, while a gauge of business leaders’ optimism sank to its lowest since April 2020 at -65, down from -52 in October.

“As businesses continue to absorb the consequences of the Budget for their business plans, confidence has continued to plummet,” IoD Chief Economist Anna Leach said.

“Far from fixing the foundations, the Budget has undermined them, damaging the private sector’s ability to invest in their businesses and their workforces,” she added.

The IoD report adds to a chorus of complaints by businesses since the budget and other signs of an economic slowdown.

Last week Reeves promised the Confederation of British Industry that she would not be “coming back with more borrowing or more taxes” at future budgets.

Reeves announced 40 billion pounds ($51 billion) of tax rises at the budget, including a 25 billion pound increase in employers’ annual social security contributions.

Labour had only pointed to around 8 billion pounds of tax rises before the election and Reeves blamed the extra increases in large part on what she said was an unexpectedly poor fiscal legacy left by the previous Conservative government.

A planned tightening of employment laws was also likely to increase costs for employers, the IoD said.

The IoD survey took place between Nov. 15 and Nov. 27 and was based on 601 responses, mostly from small businesses. ($1 = 0.7851 pounds) (Reporting by David Milliken; Editing by Toby Chopra)