Businesses at risk of scaling back UK sites and investment without Budget relief
With this Chancellor’s first Budget only weeks away, new research from leading business and financial advisor Grant Thornton UK finds that 15% of businesses – estimated to be as many as 855,000* - would look to close one or more of their UK sites or facilities if the announcement doesn't contain material relief for the tax and cost pressures they're facing.
A further one in three (35%), estimated to be as many as two million businesses*, would delay or cancel any investment or development planned in the UK over the next 12 months. While 30% would look to move planned investment, jobs or production outside of the UK altogether.
The research**, which surveyed 500 UK business and finance leaders, finds that rising labour and energy costs are two of the biggest challenges facing businesses currently, along with economic uncertainty.
If no measures are announced to improve the tax and cost environment, 39% would need to raise prices over the next 12 months.
Many of the businesses surveyed (65%) are already holding back on investment decisions until after the Budget, but most (83%) are prepared to act quickly once it lands.
Dr Tom Middleton, Partner, Economic Consulting, Grant Thornton UK, said:
"Growth depends on the UK remaining an attractive place to invest, not just for the businesses already established here, but for those deciding where to go next and how to grow. Businesses are facing what feels like an ever-increasing tax burden, macroeconomic uncertainty and cost pressures. Without relief in the Budget, many may look elsewhere when deciding where to build their next factory, open their next store or hire their next employee.”
Businesses want to see cost support and tax simplification in the Budget
To manage these challenges, business leaders want the Budget to avoid introducing further business tax rises and focus on simplifying the tax system and reducing their compliance burden. They also want the announcement to prioritise:
- creating a stable corporation tax regime
- providing support with energy costs
- increasing investment incentives
Abby Agopian, Head of Tax Policy, Grant Thornton UK, added:
"This first Budget from a new Prime Minister and Chancellor is a genuine window of opportunity to support businesses feeling the squeeze on costs and pressure from growing compliance requirements. Tax simplification and reducing compliance burdens regularly top the list of business asks. Too often, new rules – whether introduced to raise revenue or advance a policy objective – end up pushing more of the administrative load onto businesses themselves.
“The challenge for this government is not just whether they can bring in simplification but whether they can stop the tax system from getting more complex. The manifesto pledges take several broad-based revenue levers off the table, so raising meaningful revenue without breaking those promises will require the Chancellor to get creative. But making small adjustments across multiple taxes risks adding further complexity to an already intricate system – with real trade-offs for the growth and investment the UK needs to reverse its ever-growing tax burden."
*Based on a survey of 500 UK businesses (broad spread of companies, not a totally representative sample) carried out by Censuswide 28 August – 8 September 2026. Figures extrapolated and estimated by applying the relevant survey percentage to the total UK business population, per the 2025 Department for Business and Trade Business population statistics.
**Censuswide, on behalf of Grant Thornton UK, surveyed 500 business/finance leaders and heads of tax from: sole traders/businesses with revenue under £50million - businesses with revenue of £1billion, between 28 August to 8 September 2026.