Three-Quarters of UK Businesses Freeze Investment Over Budget Fears

A new survey by Helm, the UK’s leading community for scale-up founders, reveals that three-quarters of UK businesses have frozen hiring and investment decisions ahead of the Autumn Budget.

The survey shows that 84% of UK business leaders are worried about potential tax rises, highlighting significant anxiety in the business community prior to Chancellor Rachel Reeves’ Budget on November 26th.

Helm’s 400 members contribute £1 billion annually in tax, underlining the economic significance of these investment and hiring delays across the UK.

When asked ‘Are you worried about tax increases in the upcoming Budget?’, an overwhelming 84 per cent of respondents said ‘yes’, while only 8 per cent said ‘no’ and 8 per cent responded, ‘don’t know’.

The impact on business decision-making is stark. Asked ‘Are you holding off on hiring or investing decisions until you’ve seen what’s in the Budget?’, 75 per cent confirmed they are delaying crucial business decisions, with only 22 per cent proceeding with plans regardless and 3 per cent undecided.

The group’s CEO warns that the combination of Budget uncertainty and existing pressures from April’s National Insurance increases has led to investment paralysis gripping the UK’s growth companies.

Helm’s members businesses have an average revenue of £21 million each and collectively contribute £1 billion annually in tax revenues to the UK Treasury through corporation tax, employer National Insurance contributions, and other business taxes.

The findings highlight the damaging effect of Budget uncertainty on UK economic growth, with businesses across sectors freezing expansion plans at a critical time for the economy.

Andreas Adamides, CEO of Helm, said: “These figures are a flashing red light on the UK’s economic dashboard. When more than 80 per cent of business leaders are bracing for tax hikes and three-quarters have hit pause on investment, it’s clear the engine of growth is idling when it should be accelerating.

“The Chancellor must remember that confidence is the oxygen of enterprise — without it, ambition suffocates.

“The Autumn Budget must light a fire under Britain’s growth ambitions. That means no new taxes on business, real incentives for investment, and a clear signal that the UK is open for growth. Give businesses the green light to drive our economy forward.”