Four in five British firms report negative impact from Iran war
Reeves announces cost of living support package including summer VAT cut and suspended food tariffs
Eight out of ten UK businesses are experiencing negative impacts from the Middle East conflict, with a fifth pausing investment due to geopolitical uncertainty.
Key challenges include rising energy and fuel costs (64 per cent), higher shipping expenses (34 per cent) and supply chain disruptions (33 per cent), with 37 per cent of firms expecting to pass these costs onto consumers.
Small businesses are reducing borrowing and increasing savings, while larger firms are prioritising long-term investment, particularly in technology.
Nearly seven in ten firms plan to boost cybersecurity investment, and over 60 per cent are now utilising agentic AI, with more than half reporting improved productivity from AI and automation.
Barclays’ chief executive has called for a Cabinet-level AI role within the UK government to strengthen strategic intent and capitalise on economic opportunities.
