Vistage, the world's leading business performance and leadership advancement organisation for small and medium sized businesses has released its latest quarterly CEO Confidence Index for the UK and Ireland.
The confidence index, which is based on responses from business leaders, has declined slightly to 88, down from 89.5 in Q2 2025 – in comparison the index stood at 107.1 for the second quarter of 2024.
Businesses Brace Themselves for Autumn Budget
According to the report, three-quarters of business leaders (76%) are either not very confident or not confident at all that the upcoming Autumn Budget will deliver policies that support business growth.
When asked which measures would most improve SME confidence in the economy, well over half of respondents (58%) highlighted cuts to business taxes, such as Corporation Tax or Employer National Insurance, as their top priority.
As economic pressures mount, 42% of SMEs expect to raise prices in the coming months, while 19% have already increased prices by 7-10% since the start of the year.
While more than half of all those surveyed anticipate increased revenue (57%), 22% foresee a decline in profitability in the next 12 months. Only 10% expect to see any improvement in the economy in the same period, highlighting a prevailing sense of caution and concern about the future economic conditions.
Investing in People to Propel Forward
More than a third (37%) of small business leaders plan to expand their workforce over the next 12 months, demonstrating a clear intent to invest in growth even as economic challenges persist. Most SMEs are embracing flexible working arrangements, with nearly two-thirds operating a hybrid model while just under a third remain fully onsite.
Rebecca Drew, Managing Director, Vistage UK and Ireland said: "Our latest index reflects a complex picture facing SMEs in the UK and Ireland. While leaders are grappling with rising costs, weaker customer demand, and uncertainty around government policy, many are still focused on growth - planning to expand their team and invest in employee engagement. The results show that SMEs are navigating a challenging economic environment and making decisions to safeguard both their people and their bottom line. "