Key findings
- 75% of UK business leaders are concerned about employment costs and National Insurance.
- 64% are concerned about energy costs and 60% about the overall tax burden.
- 49% are concerned about cyber security, level with political and policy instability.
- 64% say UK tax policy will shape their long-term planning, more than any other factor.
What are UK businesses most concerned about?
The cost of employing people. We asked 500 senior decision-makers how concerned they are about nine issues for the year ahead. Employment costs and National Insurance top the list, with 75% very or fairly concerned.
Energy costs (64%) and the overall tax burden (60%) are next, followed by weak customer demand (57%). Cyber security and political and policy instability are on 49% each. Availability of skilled people (44%), supply chain reliability (41%) and AI disruption to the market (35%) complete the list.
The top three business worries are all costs
How concerned are you about each of the following for the year ahead? (Very or fairly concerned)
- Cost concerns
- Other concerns
View data
| Answer | % |
|---|---|
| Employment costs and NI | 75% |
| Energy costs | 64% |
| Overall tax burden | 60% |
| Weak customer demand | 57% |
| Cyber security | 49% |
| Political and policy instability | 49% |
| Availability of skilled people | 44% |
| Supply chain reliability | 41% |
| AI disruption to our market | 35% |
What shapes long-term business planning?
Tax, then people. Asked which factors are most likely to influence their long-term planning, 64% choose UK tax policy. Around half name the availability of skilled labour (49%), interest rates and the cost of capital (48%) and political stability (46%).
Technology and AI disruption and sector regulation are on 43% each. Climate and physical risk is last on 13%.
Tax policy shapes long-term plans more than anything else
Which of the following are most likely to influence your organisation’s long-term planning?
Respondents could choose more than one, so figures total more than 100%.
View data
| Answer | % |
|---|---|
| UK tax policy | 64% |
| Availability of skilled labour | 49% |
| Interest rates and cost of capital | 48% |
| Political stability | 46% |
| Regulation in our sector | 43% |
| Technology and AI disruption | 43% |
| Energy costs and net zero | 40% |
| Access to international markets | 27% |
| Availability of finance | 25% |
| Climate and physical risk | 13% |
What this means
Concern is broad. Half the market worries about cyber and four in ten about suppliers. But attention goes to what arrives every month: the payroll, the energy bill, the tax return.
That is rational, and it has a cost. As our disruption findings show, the events that stopped businesses over the last two years were mostly operational. The attention gap is the distance between the two lists.
If you sell to UK businesses, this is the context your message lands in. Anything that isn't framed as cost, demand or certainty is competing for the attention that is left.
Frequently asked questions
What is the biggest concern for UK businesses in 2026?
Employment costs and National Insurance. 75% of UK business leaders are concerned about them, according to The Reality Department's Business Reality Index.
How many UK businesses are worried about cyber security?
49% of UK business leaders are very or fairly concerned about cyber security.
What influences long-term business planning in the UK?
UK tax policy is the most cited factor (64%), followed by the availability of skilled labour (49%) and interest rates (48%).
Methodology
The Reality Department surveyed 500 senior decision-makers at UK organisations employing 50 or more people for wave one of the Business Reality Index. Quotas were set by business size, sector and region. Fieldwork: August 2026.
Related: What disrupts UK businesses?
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