LONDON, Nov 25 (Reuters) - British retailers have reported the sharpest drop in confidence in 17 years and their sales fell again ahead of Wednesday's budget which is likely to include tax increases, according to a survey published on Tuesday.

The Confederation of British Industry said its gauge of how retail sales compared with a year earlier worsened to -32 from -27 in October. The CBI's gauge of expected sales for the month ahead improved to -24 from -39.

Sign up here.

But a quarterly measure of firms' business sentiment for the next three months tumbled to -35 from -10 in August, marking the weakest reading since late 2008 when global financial crisis peaked.

"Retailers continue to grapple with a long spell of weak demand, as households remain cautious around day-to-day spending," Alpesh Paleja, the CBI's deputy chief economist, said.

"With all eyes on the forthcoming budget, uncertainty in the run-up has meant that businesses are holding back on plans for investment and hiring," Paleja said.

A measure of inflation in prices charged by retailers fell closer to its long-run average, slowing sharply from August.

The CBI's survey was conducted between October 28 and November 13. Of the 177 respondents, 66 were retailers and 95 were wholesalers.

https://www.reuters.com/business/retail-consumer/uk-retailers-confidence-collapses-17-year-low-before-budget-2025-11-25/