Two-thirds of bosses feel negatively about budget, Reeves is told

Rachel Reeves’ plans to increase borrowing will be an ‘additional challenge’, says Moody’s. Photograph: Murdo MacLeod/The Guardian

Rachel Reeves has been warned that her number one mission to boost Britain’s economy is at risk amid fresh evidence that the budget has damaged business confidence after tremors in the financial markets.

With the government under pressure to defend its tax and spending plans, business leaders said the chancellor had failed to halt a rapid deterioration in sentiment among company bosses ahead of the budget, with damaging consequences for their investment intentions.