LONDON, Oct 28 Reuters British business confidence sank to a fourmonth low in October ahead of the first budget plan from the country39;s new government, a survey showed on Monday, echoing other signs of corporate nervousness about possible tax increases.

Lloyds Bank39;s business barometer representing the difference between the percentage of firms with positive and negative views fell by 3 percentage points to 44.

But firms were more upbeat about their own prospects than those for the broader economy which touched their lowest since March and the overall index remained above its longterm average.

Many businesses remain confident in their own trading prospects, and the increase in hiring intentions suggests more employers want to grow their workforce, Lloyds economist HannJu Ho said.

The survey was based on responses from 1,200 British companies with annual sales of more than 250,000 pounds 324,575.00 and was carried out between Oct. 1 and Oct. 15.

Two surveys published last week also showed a drop in optimism among businesses.

Reeves39; budget announcement on Wednesday is likely to include an array of revenueraising changes, including possibly higher social security payments by businesses.

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Writing by William Schomberg, editing by Andy Bruce

Source Reuters