Confidence in growth prospects among private businesses in the East of England fell to 83 per cent from 86 per cent at the start of the year, according to KPMG UK’s mid-year Private Enterprise Barometer report.
KPMG surveyed 1,500 independent businesses across the UK in early 2026, including 125 in the East of England, in sectors including life sciences, tourism, food and drink and technology. It returned to the same businesses six months later to assess how circumstances had changed their perception.
The county’s figure remains above the UK average of 80 per cent. Nationally, confidence is down from 87 percent when the same businesses were surveyed earlier this year, KPMG said.
Technology was at the forefront of investment among firms in the East of England, with 67 per cent naming artificial intelligence, cyber security or wider digital transformation. That’s one per cent above the UK average and 30 per cent more than at the start of the year.
Diversity was cited by 65 percent, who said they wanted to expand their services and expand their customer base, up from 64 percent in January and two points above the national average.
In terms of financing, 53 percent said they use their own funds to support growth plans. Among businesses considering how to finance capital expenditure and expansion, 46 per cent say they are open to private investment, compared to the UK average of 45 per cent.
Asked about short-term risks, 48 percent of respondents in the East of England named inflation and ongoing cost pressures, as well as global disruption affecting supply chains and trade in the UK, as the two biggest facing their organisations.
Looking at the Autumn Budget, 52 per cent of companies in the East of England said they wanted technology and digital capabilities prioritized by the incoming Chancellor. The same section showed the outlook for the UK economy and productivity growth as a major external factor shaping decisions about investment, growth and exit planning.
Joe Faulkner, senior partner in the East Anglia office at KPMG UK, said: “It’s encouraging to see businesses in the East of England maintaining confidence despite the challenges they face.
“What is equally clear is that businesses cannot do that alone. They look for the government to comply with that desire by prioritizing digital investment and creating the right environment for innovation to develop.”
Faulkner added: “The East of England has all the ingredients to remain one of the UK’s best growth regions, particularly with the opportunities brought by the Oxford-Cambridge Growth Corridor. If we continue to invest in the infrastructure and digital capabilities that businesses need, there is a real opportunity to unlock even greater growth across the region.”
The corridor accounts for more than 7 per cent of UK GDP and more than £40bn of economic output, according to the Oxford-Cambridge Growth Corridor investment prospectus, which says realizing its potential could add another £78bn by 2035.
A separate study by Beauhurst, published in May, found that 80 per cent of UK investment is going to London, Oxford or Cambridge, with companies innovating in Cambridge increasing by 26 per cent between 2019 and 2024.
Nationally, KPMG said the private sector has identified the rapid adoption of new technologies and strong digital capabilities, growth-focused investment and a renewed industrial strategy as areas requiring the most attention in the Autumn Budget.
Euan West, head of KPMG Private Enterprise UK and EMA, said: “2026 has continued to present private businesses with a challenging operating environment, caused by uncertainty at home and abroad.
“In that context, it is encouraging that eight out of 10 business leaders are still confident about their growth.
“What stands out the most is how private businesses are responding, instead of retreating, investing in skills, technology and capabilities that will help them stay competitive and open up future growth.
“Leaders of private businesses are entrepreneurs, they focus on actions and they focus on what they can control.
