Over half of businesses set to restart delayed investment post-Budget but a third of adults say it fell short for households

• 56 per cent of UK businesses that had delayed plans are now likely to increase investment following the Autumn Budget, up from 38 per cent after last year’s Budget
• AI tops the investment agenda, with 58 per cent planning to proceed with adoption, ahead of cybersecurity and data protection (55 per cent)
• Meanwhile 33 per cent of UK adults say the Budget did not go far enough to support households, with 32 per cent now less confident about non-essential spending
• But 49 per cent of Gen Z said minimum wage rise will help with the cost of living

More than half of UK businesses that had put investment decisions on hold ahead of the Autumn Budget are now preparing to move forward, according to new research from Barclays ¹. Consumers, however, remain more cautious. A third (32 per cent) feel less confident about spending on non-essential items and 29 per cent less confident about their household finances.

The latest Barclays Business Prosperity research finds 56 per cent of firms that had delayed growth or investment plans are now likely to increase investment following the Budget, but over a quarter (26 per cent) plan to proceed at a reduced scale.

Ahead of the Budget, almost two thirds (64 per cent) of business leaders said they were delaying investment decisions, with 81 per cent saying clearer long-term economic policy would make them more likely to invest ².

The post-Budget picture is stronger than last year, when 38 per cent of businesses said they were more likely to proceed with delayed growth or investment plans following the 2025 Budget ³. This year’s renewed plans equate to an average 6.7 per cent expected increase in spending over the next 12 months, equivalent to an average spend of £564,000 per business.

Technology tops the list of plans businesses are set to restart. AI adoption is the plan businesses are most likely to proceed with following the Budget (58 per cent), ahead of cybersecurity and data protection (55 per cent), introducing new products or services (53 per cent) and improving digital infrastructure (53 per cent).

Business likelihood of increasing investment following the Budget

Very Likely 19%

Somewhat likely 37%

Neutral 23%

Somewhat unlikely 11%

Very unlikely 7%

Unsure 3%

Businesses find some certainty but consumers remain cautious

Greater policy certainty appears to have provided some reassurance for businesses, but the wider picture remains mixed. More than a quarter (27 per cent) of UK consumers are less confident in the strength of the UK economy following the Budget, compared with 11 per cent who are more confident.

Consumer confidence in UK economy following the Budget

Significantly more confident 2%
Somewhat more confident 9%
The same 49%
Somewhat less confident 13%
Significantly less confident 14%
Unsure 13%

Just over half (52 per cent) of leaders believe the Budget has given their business a clear and stable direction for future plans, up from 42 per cent after last year’s fiscal event. A similar proportion (51 per cent) say it has provided the policy certainty they need to invest, while 52 per cent are more confident about their business prospects over the next three years as a result.

Matt Hammerstein, CEO of Barclays UK Corporate Bank, said: “It’s encouraging to see with the Budget now behind them, many businesses that pressed pause are ready to get their investment plans moving again.

“But the Budget is only part of the picture. With many of the biggest fiscal decisions still to come, the Spending Review is an important moment to set out a long-term policy platform. Greater certainty will give businesses the confidence to plan and invest, breaking the cycle of speculation that can put investment on hold before fiscal events.”

Energy relief welcomed by households and businesses

Two in five UK adults (42 per cent) welcomed scrapping gas standing charges to help ease cost-of-living pressures, while 41 per cent said the £100 payment and extended VAT cut on household electricity would provide relief. But a third (33 per cent) said the Budget did not go far enough to support households, rising to 39 per cent among those aged 60 and over ⁴.

Energy relief was also seen as the Budget’s biggest boost for business. Of the measures announced, businesses expect the electricity bill discount for energy-intensive industries to have the strongest positive impact (66 per cent), followed by the extension of the fuel-duty cut and freeze (64 per cent), and the suspension of business tariffs until April 2028 (63 per cent).

Lower energy and operating costs are businesses’ biggest ask for the next three years (37 per cent), followed by lower business taxation (34 per cent), greater stability and predictability in regulation (28 per cent), and better access to finance and growth capital (24 per cent).

Wage rise divides opinion as business finance support lands well

Leaders were more divided over the 3.9 per cent increase in the National Living Wage, with 53 per cent viewing the measure positively for their business and 24 per cent negatively. Views among consumers were also mixed. Less than three in 10 (28 per cent) said it would provide relief, while a third (33 per cent) expected little or no relief, with the remainder unaffected. Almost half of Gen Z (49 per cent) said the increase in the minimum wage will provide relief with the cost of living.

Meanwhile more than half (53 per cent) of business leaders expect measures to increase the finance available to UK businesses, including the expansion of the Growth Guarantee Scheme and increased investment through the British Business Bank and National Wealth Fund, to improve their ability to invest and grow.

However, close to three in 10 (28 per cent) do not expect their business to be eligible. Almost half (49 per cent) say access to finance is not holding back their investment plans or that they can already secure the funding they need from banks and other commercial providers.

Jack Meaning, Chief UK Economist at Barclays, said: “This was a Budget of continuation rather than revolution, and for many businesses that has been enough to bring investment plans back to the table. The pick-up in intentions, particularly around AI and technology, fits with the step-up in business investment we have seen this year and is an encouraging sign for productivity.

“Households are telling a more cautious story. Energy support will help at the margin, but many are still feeling the squeeze and holding back on non-essential spending. Whether business confidence feeds through into broader growth will depend on that caution easing.”

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.

Notes

Research methodology

¹The research was conducted by Focaldata on behalf of Barclays among 1,059 UK business decision-makers. Fieldwork took place between 28 October and 2 November 2026. Respondents were owners, founders, C-suite leaders, directors, senior managers and managers who were primary financial decision-makers or shared responsibility for financial decision-making.

²Comparisons with the 2026 pre-Budget research refer to Barclays research among 1,036 business decision-makers conducted by Focaldata between 24 and 29 September 2026.

³Comparisons with last year refer to Barclays post-Budget research among 1,092 business decision-makers conducted between 27 November and 1 December 2025.

⁴The post-Budget consumer research in this press release was carried out between 31 October and 3 November 2026 by Opinium Research on behalf of Barclays. There were 2,000 respondents in each round of research, providing a representative sample of UK consumers by age, gender, region, and income group.

About Barclays

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