The survey, which tracks business sentiment among 1,500 private business owners, shows that 80% were confident or very confident of their organisation’s growth prospects over the next 12 months. While this is down from 87% at the end of 2025, confidence levels were resilient despite ongoing uncertainty in the UK and global economy.

Technology came out as the top investment priority for private businesses, with 66% naming AI, cyber and digital transformation as key areas that will support growth plans – a massive jump from 39% just six months ago – signalling how investment is shifting towards practical implementation of tech like AI to improve productivity, efficiency, and growth.

The next most important priorities in the survey, which covers a range of sectors, were workforce and skills (37%), innovation (32%), sustainability (26%) and regulatory compliance (15%).

The growing importance of improving capability and skills jumped a quarter to more than a third (37%) in the past six months as executives realised the need to equip employees to work alongside rapidly evolving technologies such as AI.

Looking ahead to the Autumn Budget, private businesses said the areas most in need of attention to help bolster growth are the faster adoption of new technology and boosting digital capability, growth-focused investment and the continued focus on a renewed industrial strategy.

Euan West, head of KPMG Private Enterprise in the UK and EMA, said: “2026 has continued to present private businesses with a challenging operating environment, shaped by uncertainty both at home and abroad.

“Against that backdrop, it is encouraging that eight in 10 business leaders remain confident about their growth prospects. While confidence has eased since the end of last year, the overall picture remains one of resilience and determination.

“What stands out most is how private businesses are responding. Rather than pulling back, they are investing in skills, technology and the capabilities that will help them remain competitive and unlock future growth.”

He added: “These results highlight a business community that is realistic about the challenges ahead but confident in its ability to overcome them.

“Private enterprise leaders are entrepreneurial, action-oriented and focused on what they can control. They are not waiting for conditions to improve; they are getting on with the job of creating growth.”