Chancellor Rachel Reeves has been urged to "let businesses get on with it and get out of the way" as she prepares to deliver her second Autumn Budget in the forthcoming months.
A cohort of 1,500 private sector leaders polled by KPMG indicated the Chancellor ought to concentrate on encouraging enhanced wages whilst reducing operational costs for enterprises, as reported by .
They emphasised that elevated taxes, including the rises to employers' National Insurance contributions and the National Minimum Wage implemented in last year's Autumn Budget, represent a "hindrance, not a help".
The private sector chiefs also demanded a scaling back of "unnecessary regulations" and urged the government to cease meddling with corporate operations.
Based on polling data from KPMG, provided exclusively to City AM, the executives additionally seek a reversal of the National Insurance increase brought in during April alongside the government's net zero policies.
They also expressed backing for a reduction in VAT and enhanced support for smaller enterprises.
When questioned about which crucial business priorities they would want Reeves to address in the Autumn Budget, 44 per cent of the 1,500 directors surveyed want the Chancellor to emphasise the implementation of innovative technology.
An additional 35 per cent want Reeves to assist businesses in enhancing their profitability through the aforementioned tax measures.
Among the directors questioned, 31 per cent want Reeves to concentrate on skills and talent whilst 27 per cent referenced the government's Industrial Strategy and "growth-focused investment."
Last year's Autumn Budget, the first under Labour since they lost power in 2010, continues to cast a shadow over º£½ÇÊÓƵ businesses, as per data released by the CBI in June.
Confidence on the rise despite Autumn Budget concerns
The data was gathered via KPMG's biannual Private Business Barometer, which surveyed the same 1,500 private business leaders it had earlier this year to assess any changes in their confidence in the º£½ÇÊÓƵ business landscape.
The initial poll covered a variety of sectors including professional services, finance, technology, industrial manufacturing and retail, focusing on several different topics.
These businesses have now been re-surveyed to determine whether events in the first half of 2025 – such as supply chain disruption and ongoing economic uncertainty – have significantly altered their perspectives.
Earlier this year, a robust 92 per cent were optimistic about their company's growth prospects over the next 12 months, with 59 per cent expressing high confidence.
Despite well-documented challenges facing both the º£½ÇÊÓƵ and global economies, the mid-year review saw an increase in both areas, with 93.2 per cent of respondents expressing confidence and 62.1 per cent very confident regarding future growth.
Inflation and cost pressures were once again identified as the primary obstacles to growth.
In pursuit of expansion, business leaders repeatedly emphasised their ambition to develop fresh products and enter untapped markets. Notably, whilst half of our survey participants had previously identified the significance of new products earlier in the year, this latest round saw nearly three quarters of companies (72 per cent) highlighting this priority.
'º£½ÇÊÓƵ is seen as a stable environment for business'
Euan West, head of KPMG private enterprise in the º£½ÇÊÓƵ and EMA, commented: "It is pleasing to see that our mid pulse survey of private businesses has shown a cautious optimism when it comes to potential growth."
"2025, like 2024, has been filled with many challenges at home and abroad for firms of all shapes and sizes, this is why it is heartening to see continual but steady levels of confidence looking towards the future."
"The results of this survey show that the º£½ÇÊÓƵ is seen as a stable environment for business, providing a strong launch pad for future growth."
"Despite global uncertainty, private businesses have continued to show a resilience and adaptability and are now very adept at managing through a wide variety of challenges."
Who took part?
Among the 1,500 private business leaders polled, 49 per cent fell within the 25 to 34 age bracket, whilst 26 per cent belonged to the 35 to 44 demographic.
An additional 12 per cent were positioned between 45 and 54, whilst just seven per cent ranged from 55 to 64, and both the 18 to 24 and 65+ categories accounted for three per cent of participants each. The KPMG survey revealed that the majority of respondents, 63 per cent, were male.
Geographically, the directors were almost evenly distributed across the country, with representation ranging from seven per cent in Wales, Northern Ireland and the North East to 11 per cent in London.
A significant 74 per cent of the business leaders helm privately owned companies not owned by themselves or their family, while the remaining 26 per cent were either owned or run by a family.
In terms of annual revenue, 23 per cent reported a turnover between £1m and £10m, 17 per cent between £11m and £50m, and 14 per cent up to £100,000. An additional 12 per cent had a revenue ranging from £101m to £500m.
Delving into the data
When questioned about their company's growth prospects for this year, a confident 62 per cent of those surveyed expressed high confidence, while 31 per cent stated they were somewhat confident. A small six per cent said they were not very confident, and a mere one per cent admitted they were not confident at all.
When asked about the most crucial area of investment for their firm, a substantial 67 per cent pointed to technology, while 36 per cent highlighted workforce and skills.
Regarding potential short-term negative impacts on their businesses, inflation emerged as a major concern for 45 per cent of respondents. Additionally, 32 per cent cited further tax increases in the Autumn Budget in October, and 31 per cent mentioned rising employment costs.
Interest rates were a concern for 30% of those surveyed, while 22% pointed to US tariffs and potential trade disruptions.
Geopolitical issues such as the conflict in Ukraine were cited as a major worry by only 14% of respondents.
When questioned about long-term factors that would impact their growth, investment or exit strategies, 51% of leaders highlighted the performance of the º£½ÇÊÓƵ and/or global economies.
The availability and cost of capital was mentioned by 42%, while 41% pointed to the performance of capital markets and equity valuations.
º£½ÇÊÓƵ capital gains tax was a concern for 30% of those polled, with retirement and succession planning chosen by 25%.
The º£½ÇÊÓƵ's foreign income and gains rules – formerly known as non-dom rules – were flagged by 24% of business leaders, and 21% pointed to the º£½ÇÊÓƵ's inheritance tax regime.
Why business confidence is all over the place
The latest KPMG business confidence survey aligns with recent research by Lloyds Bank, which indicated business confidence is nearing historic highs.
However, most other surveys suggest a less positive picture. The Institute of Directors (IoD), the Confederation of British Industry (CBI), the British Chambers of Commerce (BCC) and the Institute of Chartered Accountants in England and Wales (ICAEW) all reported negative confidence levels.
The IoD went so far as to caution that confidence had reached a historic low, primarily due to the backlash from last Autumn's massive tax raid, while others have observed varying levels of negative responses or slight optimism.
Economists have disagreed over its findings, with some highlighting that more negative surveys demonstrate how business leaders are more likely to criticise the broader º£½ÇÊÓƵ economy's prospects rather than their own.
