UK businesses delay investment plans: but eight in 10 ready to invest if Budget delivers long-term certainty

• 64 per cent of business leaders are delaying investment decisions until after the Budget, up from 55 per cent ahead of last year’s fiscal event
• Meanwhile 27 per cent of consumers are postponing major purchases and financial decisions as they await greater clarity
• Despite this, 50 per cent of leaders are more confident in their region’s economy than a year ago and 61 per cent of consumers are confident to make sound financial decisions
• 81 per cent would be likely to increase investment if the Budget provides greater long-term certainty around economic policy
• Technology, AI and automation are the top priorities for future investment (37 per cent), followed by workforce training and skills (31 per cent) and new products and services (30 per cent)

New Barclays Business Prosperity research1 from over 1,000 business leaders, alongside research from 2,000 consumers, reveals UK businesses and consumers remain ready to invest and spend, but for the third year running, uncertainty ahead of a major fiscal decision is holding that activity back.

Business ambition is being held back by uncertainty

More than six in 10 (64 per cent) businesses are currently delaying investment decisions until after the Budget, up from 55 per cent ahead of last year’s fiscal event. Meanwhile, more than a quarter (27 per cent) of consumers are postponing major purchases and important financial decisions as they wait for greater clarity.

While many businesses are adopting a wait-and-see approach, Barclays’ research suggests a significant pipeline of investment could be unlocked if firms are given greater confidence. More than eight in 10 businesses (81 per cent) say they would be likely to increase investment if the Government provides a clearer long-term economic policy framework.

Among those currently delaying investments, the most postponed decisions are technology, AI and automation projects (29 per cent), new products and services (29 per cent), new facilities or premises (26 per cent), marketing expenditure (26 per cent) and workforce training and skills programmes (26 per cent).

Despite the pause in investment decision-making, businesses appear increasingly optimistic about the economic outlook in their regions, amid the Government’s focus on regional devolution. Half (50 per cent) of UK businesses say they are more confident in their region’s economy than a year ago, rising to 57 per cent among medium-sized businesses and 58 per cent among large businesses.

Businesses call for action on investment barriers

Business leaders are looking to the Budget for clarity on the factors they deem to be holding back investment. The most commonly cited reasons for delaying decisions are uncertainty around UK economic growth and high energy costs (both 34 per cent), future tax policy (29 per cent) and Government spending priorities (26 per cent).

Lower business taxes are viewed as the measure most likely to encourage investment (39 per cent). This is especially important for small businesses (42 per cent) and micro businesses (47 per cent). Employment cost support (37 per cent) and energy cost support (35 per cent) are also seen as important levers to unlock growth.

If businesses increase investment following the Budget, their leading priorities over the next year will be technology, AI and automation (37 per cent), workforce training and skills (31 per cent) and new products and services (30 per cent). Machinery and equipment (21 per cent) and cybersecurity (20 per cent) are also key priorities.

Consumers remain confident but delay decisions amid uncertainty

The cost of uncertainty is not confined to business investment. Almost seven in 10 consumers (68 per cent) are concerned about the potential impact of the Budget on their household finances, while three in five (61 per cent) are concerned about potential tax changes. Reflecting this uncertainty, close to four in 10 (38 per cent) feel less sure than in previous years about the implications of the announcements that may be made.

Reassuringly, 61 per cent feel confident in their ability to make good financial decisions in uncertain times and 53 per cent feel in control of their finances, even in times of volatility.

The uncertainty appears to be influencing household decision-making, with a quarter (25 per cent) building up a savings buffer and 30 per cent reducing non-essential spending. Meanwhile, 27 per cent say they’re delaying both major purchases and important financial decisions until after the Budget, indicating that many households are choosing to preserve flexibility until they have a clearer picture of what the announcements could mean for their finances.

Matt Hammerstein, Chief Executive of Barclays UK Corporate Bank, said: “Businesses do not lack confidence or ambition. Yet many businesses and consumers are delaying important decisions as they await clarity around another major fiscal event.

“The opportunity for this Budget is to provide the stable, long-term framework that gives businesses the confidence to commit capital and consumers the confidence to spend. Greater certainty beyond the immediate fiscal moment will be vital if this pause is not to become a recurring feature of business planning, and instead unlock pent up investment, productivity and growth across the UK.”

Barclays Business Prosperity Fund

To support businesses to invest in resilience and growth, The Barclays Business Prosperity Fund is available for new and existing Business Banking customers and UK Corporate Banking clients across the UK to apply for lending and refinancing on existing projects. Businesses can find out more at: home.barclays/businessprosperity.

£22bn is the total amount of lending Barclays has available to lend and support business growth among Business Banking and UK Corporate Banking clients in 2026. Subject to normal lending assessment, status and application. Terms and conditions apply.

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Notes

Barclays Business Prosperity Research

¹ The survey data was conducted among 1,036 business decision makers, between 24 ^th – 25 ^th September 2026, by Focaldata on behalf of Barclays.

The businesses represented in the survey include 186 micros (1-9 employees), 182 small businesses (10-49 employees), 207 medium businesses (50-249 employees), and 461 large businesses (250+ employees) across multiple sectors, and all regions of the UK.

The Barclays Consumer Spend research in this press release was carried out between 25 ^th-29 ^th September 2026 by Opinium Research on behalf of Barclays. There were 2,000 respondents, providing a representative sample of UK consumers by age, gender, region, and income group. Opinium adheres to Market Research Society (MRS) standards for respondent verification and transparency. All respondents were verified through Opinium’s rigorous identity validation and data quality processes.

For more information on the Business Prosperity Index visit: home.barclays/businessprosperity

About Barclays

Our vision is to be the UK-centred leader in global finance. We are a diversified bank with comprehensive UK consumer, corporate and wealth and private banking franchises, a leading investment bank and a strong, specialist US consumer bank. Through these five divisions, we are working together for a better financial future for our customers, clients and communities.

For further information about Barclays, please visit our website home.barclays