07 Jul 2026
Research carried out by the British Chambers of Commerce (BCC) has revealed that business investment plans have hit a post-pandemic low.
Just 17% of firms plan to increase investment, down from 21% in the first quarter of this year.
44% of businesses said they expect turnover to improve in the next year, which is down from the figure of 49% recorded in the first quarter of 2026.
Only 29% of firms reported an increase in sales over the previous three months and 28% reported a decrease.
David Bharier, Deputy Director of Economics and Insight at the BCC, commented: 'The continued fall in SME investment sentiment is further evidence of a longer-term pattern that no single shock explains.
'Our data shows a risk-aversion cycle taking hold. Firms have not lost ambition, but years of compounding cost pressures and geopolitical shocks have produced defensive behaviour for the average SME.
'Most firms are now experiencing policy as downside risk rather than opportunity – with the rise in employer NICs a prominent example, still being felt almost two years on. Reducing the cost and complexity of the administrative burden would give many firms the space to grow.'