UK Business Confidence Hits 12-Year Low as Cost Pressures Mount
Small business growth expectations in England have collapsed to just 24%, the lowest level in a dozen years, as firms cite energy costs, geopolitical tensions, and tax uncertainty. Job postings have fallen 11% and wage growth has slowed to its weakest rate since early 2022.
UK business sentiment has deteriorated sharply, with a dramatic reversal in hiring plans and investment confidence. Small business growth expectations in England have plummeted to 24% — the lowest reading in the survey's 12-year history, according to research from Novuna Business Finance released on 4 August 2026.
The pullback is widespread across sectors, with construction, retail, and hospitality recording particularly steep declines. Firms cite mounting pressures: geopolitical tensions, higher fuel costs from the Middle East crisis, and political uncertainty about the forthcoming October Budget have made businesses reluctant to commit to expansion.
Job market indicators are also weakening. Indeed data shows UK job postings declined 11% in the first half of 2026 and remain about 32% below pre-pandemic levels. Graduate vacancies have fallen to their lowest level for this stage of the year since 2020, while advertised wage growth has slowed to just 3.9% — its weakest rate since early 2022.
What this means for you
If you're relocating to the UK for work, this slowdown signals a tightening labour market with fewer job opportunities at entry level. Employers are being cautious about hiring and expansion, which could affect salary negotiations and job security. Those considering remortgaging or negotiating rent should be aware that businesses' reluctance to invest may eventually feed through to lower wage growth across the economy.
Sources
MyHAbroad is an independent app and is not affiliated with, endorsed by, or representing any government or public authority. This is general information only — not legal, tax, medical, or financial advice. Always verify with the official source before acting:
