More clouds gathering over business confidence

07 Jan 2026

Confidence among firms has continued to weaken, with tax remaining the biggest concern, according to the British Chambers of Commerce (BCC).

The business group's Quarterly Economic Survey also found more businesses now expect to raise prices in 2026.

The survey found that confidence among business has fallen again, with only 46% of responding firms expecting an increase in turnover. This is the lowest level in three years. 

Tax remains the biggest concern for business, cited by 63% of firms. Concern about taxation was heightened prior to the Budget on 26 November. Before the Chancellor's statement, 68% of businesses who had taken part in the survey said tax was a concern. After the Budget tax concern fell to 61% of responding firms. 

David Bharier, Head of Research at the BCC, said: 'Our data shows more clouds have gathered over business confidence, and the outlook for SMEs in 2026 is unsettled. 

'Firms tell us they are worried about tax, struggling to invest and fear they'll have to put their prices up in the months ahead. 

'It is now critical that 2026 is a year of delivery. The government needs to turn last year's strategies into action; boost investment, significantly expand trade, and ease the myriad burdens facing businesses. Only then will the economic outlook shift from its current low-growth trajectory.'