![\"Hospitality\"](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2025\/06\/Hospitality-laying-table.png\")
More businesses expect to raise prices and are scaling back their investment plans as confidence continues to weaken, according to the UK\u2019s largest business sentiment survey.<\/p>\n
The\u00a0British Chambers of Commerce (BCC) Quarterly Economic Survey\u00a0found less than half of responding firms\u00a0(46%)\u00a0are\u00a0expecting\u00a0increased turnover\u00a0over\u00a0the next 12 months \u2013 the lowest level\u00a0in\u00a0three\u00a0years.<\/p>\n
Over half of firms (52%) say they will raise their prices in the next three months, up\u00a0significantly from the previous quarter (44% in Q3).<\/p>\n
More than a quarter (27%) say they have cut back on investment plans, while\u00a0just 19%\u00a0of firms increased their plans.\u00a0\u00a0Plans to cut back are more acute among hospitality firms (37%), retail businesses (36%) and manufacturers\u00a0(32%).<\/p>\n
The survey was carried out by the BCC Insights Unit and the UK-wide Chamber network,\u00a0before and after the Budget, with the fieldwork conducted between 10 November\u00a0and\u00a08 December. Over 4,600 businesses across the UK (91% of whom are SMEs) responded\u00a0online.\u00a0<\/p>\n
Despite interest rate cuts and the prospect of more to come, the economy is showing few signs of growth and there are forecasts that unemployment will rise as companies are bombarded with further cost burdens.<\/p>\n
Tax\u00a0remains\u00a0the biggest concern for business,\u00a0cited by 63% of firms,\u00a0up from\u00a059% in Q3. This is the same level of concern\u00a0seen in\u00a0Q4\u00a02024,\u00a0after\u00a0the\u00a0previous\u00a0Budget.\u00a0<\/p>\n
However, concern about taxation\u00a0was heightened prior to the Budget on\u00a026 November. Before the Chancellor\u2019s statement,\u00a068% of businesses\u00a0who had taken part in the survey\u00a0said tax\u00a0was a concern. After the Budget\u00a0tax\u00a0concern fell to\u00a061% of responding firms.\u00a0Worries about inflation remain high,\u00a0cited by 56% of firms, broadly\u00a0similar to\u00a0Q3.\u00a0\u00a0<\/p>\n
David\u00a0Bharier, head of research at the BCC, said:\u00a0\u201c<\/strong>Our data\u00a0shows more\u00a0clouds\u00a0have gathered over business confidence,\u00a0and the\u00a0outlook\u00a0for\u00a0SMEs in 2026\u00a0is\u00a0unsettled.\u00a0\u00a0<\/p>\n \u201cFirms tell us they are worried about tax, struggling to invest and\u00a0fear\u00a0they\u2019ll\u00a0have to put their prices up in the months ahead.\u00a0Firms\u2019\u00a0confidence in their turnover growth has been stuck stubbornly below 50%\u00a0for the last 12 months.<\/p>\n \u201cIt is now critical that\u00a02026\u00a0is\u00a0a year of delivery. The Government needs to turn last year\u2019s strategies into action; boost investment, significantly expand trade, and ease the myriad burdens facing businesses. Only then will the\u00a0economic outlook shift from its current low-growth trajectory.\u201d\u00a0<\/p>\n \t <\/div>\n