"The quarterly confidence index, which is based on responses from business leaders, has declined to 88, down from 89.5 in Q2 2025 and 107.1 in Q2 2024. The results also indicate that SMEs are in an era of cautious optimism amidst economic uncertainties. While more than half of all those surveyed anticipate increased revenue (57%), 22% foresee a decline in profitability in the next 12 months."
"According to the report, the vast majority of business leaders (76%) are either not very confident or not confident at all that the upcoming Autumn Budget will deliver policies that support business growth. When asked which measures would most improve SME confidence in the economy, more than half of respondents (58%) highlighted cuts to business taxes, such as Corporation Tax or Employer National Insurance, as their top priority."
"As economic pressures mount, 42% of SMEs expect to raise prices in the coming months, while 19% have already increased prices by 7-10% since the start of the year. These price increases come at a challenging time as customer demand softens, with one in four small business leaders reporting a noticeable drop. The combination of rising costs and weakening demand underscores the difficult balancing act SMEs face: maintaining profit while keeping customers engaged."
The CEO Confidence Index declined to 88, down from 89.5 in Q2 2025 and 107.1 in Q2 2024. SMEs display cautious optimism: 57% expect increased revenue while 22% foresee falling profitability over the next 12 months. Only 10% anticipate any improvement in the wider economy in the coming year. Seventy-six percent are not confident that the Autumn Budget will deliver growth-supporting policies, and 58% prioritise cuts to business taxes. Rising costs are driving price rises—42% expect to raise prices and 19% have already increased prices by 7–10%—even as one in four report weaker demand. Thirty-seven percent plan to expand their workforce in the next 12 months.
Read at London Business News | Londonlovesbusiness.com
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