UK enterprise confidence weakened and hiring fell at finish of 2025, surveys discover

[ad_1] UK enterprise confidence weakened sharply on the finish of 2025 and hiring fell amid rising prices and uncertainty in regards to the financial outlook, in line with key enterprise surveys.

Contrasting with the prime minister’s optimistic new yr message that the nation was about to begin feeling richer once more, the roles market weakened, with full-time and non permanent appointments falling in December, in line with a research by the accountants KPMG and the Recruitment and Employment Confederation (REC).

Jon Holt, the group chief government of KPMG, mentioned: “The roles market on the finish of 2025 was nonetheless signalling warning. After an extended stretch of rising value pressures and better world financial uncertainty, many companies proceed to pause hiring and are flexing the place they will by utilizing non permanent workers.

“As we head into the brand new yr, this restraint is prone to stay within the close to time period.”

In the meantime, UK enterprise confidence weakened sharply on the finish of 2025, in line with the newest enterprise developments report from BDO, with the accountancy agency’s “optimism index” falling to its lowest stage in practically 5 years.

Scott Knight, the top of progress at BDO, mentioned: “Enterprise prices are rising and turnover expectations are falling; it’s no surprise that optimism is on the ground. Decisive motion like additional rate of interest deductions and a transparent roadmap of what’s forward is crucial in the event that they’re to develop and make investments.”

Keir Starmer kicked off 2026 with a sequence of briefings about how Britons would quickly discover an enhancing economic system, with claims his authorities had succeeded in bringing down residing prices due to cuts to vitality payments and rates of interest in addition to the tip of the two-child profit cap.

There was additionally blended information for Downing Road from a 3rd financial survey, exhibiting that Britain’s producers consider the introduction of the federal government’s industrial technique final yr will enhance their progress prospects in 2026.

A majority of producers consider the alternatives for his or her enterprise to succeed outweigh the dangers this yr, in line with an annual survey from the sector’s commerce physique Make UK and the accounting group PwC.

Nonetheless, Make UK mentioned the survey additionally signalled that the numerous will increase in enterprise prices, particularly on employment and vitality, had been threatening to succeed in “a tipping level whereby funding plans will likely be cancelled or shifted abroad”.

Stephen Phipson, the chief government of Make UK, mentioned producers may solely thrive “in probably the most beneficial enterprise setting”.

He mentioned: “Regardless of the dedication to an industrial technique, not solely is progress anaemic however the warning lights are actually flashing crimson on the UK as a aggressive place to fabricate and make investments. The federal government promised important change; now's the time to ship it.”