Confidence in growth prospects among privately owned businesses in the East of England has fallen to 83 per cent from 86 per cent at the start of the year, according to the mid-year update to KPMG UK’s Private Enterprise Barometer.
KPMG surveyed 1,500 privately owned businesses across the UK at the start of 2026, including 125 in the East of England, spanning sectors including life sciences, hospitality, food and drink and technology. It returned to the same businesses six months later to test how conditions had changed their outlook.
The regional figure remains above the UK average of 80 per cent. Nationally, confidence fell from 87 per cent when the same businesses were surveyed earlier in the year, KPMG said.
Technology was the leading investment priority among East of England firms, with 67 per cent naming artificial intelligence, cyber security or wider digital transformation. That is one percentage point above the UK average and 30 percentage points higher than at the start of the year.
Diversification was cited by 65 per cent, who said they were looking to expand their service offerings and broaden their client base, up from 64 per cent in January and two points above the national figure.
On funding, 53 per cent said they were using their own balance sheets to support growth plans. Among businesses considering how to pay for capital expenditure and expansion, 46 per cent said they were open to private equity investment, against a UK average of 45 per cent.
Asked about short-term risks, 48 per cent of East of England respondents named inflation and ongoing cost pressures, alongside global disruption affecting UK supply chains and trade, as the two biggest facing their organisations.
Looking to the Autumn Budget, 52 per cent of East of England firms said they wanted technology and digital capability prioritised by the incoming Chancellor. The same proportion pointed to the UK economic outlook and productivity growth as the biggest external factor shaping decisions on investment, growth and exit planning.
Joe Faulkner, East Anglia office senior partner at KPMG UK, said: “It’s encouraging to see businesses across the East of England maintaining confidence despite the challenges they’re facing. There’s a real sense that businesses here aren’t standing still but continuing to invest, particularly in technology, because they know it’s critical to staying competitive.
“What’s equally clear is that businesses can’t do it alone. They’re looking for government to match that ambition by prioritising digital investment and creating the right environment for innovation to thrive.”
Faulkner added: “The East of England has all the ingredients to remain one of the UK’s leading growth regions, particularly with the opportunities the Oxford-Cambridge Growth Corridor presents. If we continue to invest in the infrastructure and digital capability that businesses need, there’s a real opportunity to unlock even greater growth across the region.”
The corridor accounts for more than 7 per cent of UK GDP and over £40bn of economic output, according to the government’s Oxford-Cambridge Growth Corridor investment prospectus, which states that realising its potential could add a further £78bn by 2035.
Separate research by Beauhurst, published in May, found that 80 per cent of venture capital invested in the UK goes to London, Oxford or Cambridge, with headcount at innovative companies in Cambridge up 26 per cent between 2019 and 2024.
Nationally, KPMG said private businesses identified faster adoption of new technology and stronger digital capability, growth-focused investment and a renewed industrial strategy as the areas most in need of attention at the Autumn Budget.
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.
“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.”
