UK business confidence weakened and hiring fell at end of 2025, surveys find

The Guardian - World NewsEN 2 min read 100% complete by Simon GoodleyJanuary 12, 2026 at 01:01 AM

AI Summary

medium article 2 min

UK business confidence weakened and hiring declined at the end of 2025, according to surveys by KPMG/REC and BDO. Rising costs and economic uncertainty contributed to the downturn, with BDO's optimism index hitting a near five-year low. While the Prime Minister projected economic improvement, the jobs market showed caution, with firms pausing hiring. A separate survey by Make UK and PwC revealed manufacturers believe the government's industrial strategy will boost growth in 2026. However, the survey also indicated that rising business costs, particularly for employment and energy, could threaten investment plans.

Key Entities & Roles

Key Player Opposition Context

Downing Street 40% Scott Knight 50% Stephen Phipson 50% Keir Starmer 60% Recruitment and Employment Confederation (REC) 60% PwC 60% Jon Holt 60% KPMG ×270% BDO ×270% Make UK ×370% United Kingdom ×290%

Keywords

business confidence 90% hiring 80% economic outlook 70% rising costs 70% jobs market 60% industrial strategy 50% interest rates 50% investment plans 40% manufacturers 40%