Private Enterprise Barometer 2026

The strong confidence and growth expectations seen here reflect the capital and surrounding area’s role as the UK’s economic engine, with good access to capital, talent and international markets. London is a leading driver of technology adoption, with 48% prioritising technology investment and 46% prioritising investment in AI – both significantly higher than the national average: the tech charge is being led from the centre. There is also higher confidence than the average in the ability to recruit the talent needed – underlining the strong attraction of London and the South East to a wide range of people looking to build or further a career.

A standout here is the high percentage of leaders who report increased interest in internationalisation – 88% compared to the 70% national average. This strong focus on international expansion could be a major opportunity for regional growth, especially given the region’s manufacturing and export base. Support for trade and export infrastructure will be key.

Businesses in the north west are notable for their bullish expectations around profitability growth – 80% compared to the 67% national average. This could be a reflection of sector strengths such as in advanced manufacturing, life sciences, finance, professional services and media. It’s a positive sign for investment and job creation in the region.

There is a strong sustainability focus in Scotland, with 68% of those focusing on it prioritising sustainable materials, compared to the national average of 60%. This aligns with Scotland’s prominent position on net zero and renewables and underlines its potential to be a leader in green business and investment.

The standout statistic in Wales is that 45% of private enterprise leaders are focusing on reskilling staff as a priority – well above the national average of 38%. This recognition of the upskilling imperative could be crucial for adapting to technological and economic change, supporting social mobility and ensuring long-term competitiveness.

The region is notable for its workforce confidence with 58% of leaders satisfied in their ability to recruit the skills they need, compared to the 49% national average. This may reflect effective local skills initiatives or sectoral strengths (e.g. aerospace & defence, creative industries), creating a strong foundation for future growth.

Leaders here have a strong innovation focus – 40% compared to the national average of 27%. There is also a slightly higher focus on technology investment (41% vs 39%), while investment in AI matches the national average (38%). These factors could prove vital to the region’s manufacturing and automotive sectors, helping them transition to new technologies and markets.

Confidence in the business outlook is lower in the East Midlands than anywhere else – although at 76% it is still reasonably healthy. Demand is a positive here, with 51% citing it as a confidence driver, ahead of the national average of 45%. However, tech and AI investment prioritisation is relatively low, suggesting a need for a boost to digital transformation and workforce development efforts.

Cost pressures were cited as a top concern by more leaders here than any other region (60% compared to the 51% national average). This may reflect energy, logistics or supply chain challenges in the region. Meanwhile – or perhaps flowing from this – investment in technology and AI is relatively low. Addressing these challenges will be key to sustaining growth and competitiveness.

The east of the country is closely aligned to national averages throughout. However, the expectation that revenues will increase is slightly lower (78% compared to 82%) while a perception of increased risks is slightly higher (53% compared to 48%) – suggesting a slightly cautious outlook and some creeping downside concerns.