Back to today’s briefing

Story perspectives

UK Business Confidence Plummets Amid Rising Costs and Uncertainty

1/12/2026

45 4 Full Breakdown

Summary

Story summary

UK business confidence fell at the end of 2025 as hiring declined due to rising costs and uncertainty, per KPMG and BDO.
KPMG's Jon Holt said firms are cautious, pausing hiring and relying on temporary staff.
BDO's optimism index hit a five-year low amid rising costs.
Prime Minister Keir Starmer claimed improvements in living costs.
Make UK's Stephen Phipson warned that without decisive government action the UK risks losing its competitive edge.

1 of 1

Story summary

UK business confidence fell at the end of 2025 as hiring declined due to rising costs and uncertainty, per KPMG and BDO.
KPMG's Jon Holt said firms are cautious, pausing hiring and relying on temporary staff.
BDO's optimism index hit a five-year low amid rising costs.
Prime Minister Keir Starmer claimed improvements in living costs.
Make UK's Stephen Phipson warned that without decisive government action the UK risks losing its competitive edge.