LONDON, Nov 5 Reuters Britain39;s services sector lost momentum in the runup to the new government39;s first budget in October, with business activity growing at the weakest rate in 11 months and the first fall in employment since December, a survey showed on Tuesday.

The SP Global UK Services Purchasing Managers Index stood at 52.0 last month from September39;s 52.4 the slowest pace of increase since November 2023.

October39;s reading was slightly higher than a preliminary estimate of 51.8.

The composite PMI which combines the services data with last week39;s downwardly revised manufacturing survey  also fell to an 11month low, slipping to 51.8 from September39;s 52.6.

The wait for clarity on government policy ahead of the Autumn Budget was widely reported to have weighed on business confidence and spending, Tim Moore, economics director at SP Global Market Intelligence, said.

Broader geopolitical concerns and forthcoming U.S. elections also added to a sense of waitandsee on business investment decisions in October. At the same time, cost of living pressures remained a constraint on household spending.

Moore said some companies noted constraints on their budgets due to elevated pay pressures.

Finance minister Rachel Reeves on Oct. 30 unveiled 40 billion pounds 52 billion in tax increases and higherthanexpected borrowing in her budget. She also announced an increase in the minimum wage for most adults and higher social security contributions for businesses a…