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      London’s boardrooms are operating with exceptional clarity and momentum. An impressive 92% of privately owned businesses anticipate growth this year, while 86% expect revenues to rise - both outpacing national averages. This surge in optimism positions the capital as a key catalyst for the UK’s next phase of economic expansion, driving innovation, attracting global investment, and setting the pace for wider prosperity.

      Fuelled by unrivalled access to capital, a highly skilled talent pool, and seamless links to international markets, London’s economic engine appears to be revving up.

      London’s economic pulse beats stronger than ever

      Anna Purchas
      Anna Purchas

      London Office Senior Partner & Regional Chair

      KPMG in the UK

      Almost half of London’s leaders of privately owned businesses (48%) describe themselves as very confident about the future, with overall confidence levels reaching 92%. The expectation that 86% of firms will increase revenues, compared with 82% nationally, underscores the capital’s powerful economic momentum.

      Growth powered by rising investment in technology

      London continues to lead the way in innovation. Nearly half of privately owned businesses (48%) are prioritising technology investments, with 46% placing AI at the top of their agenda, both notably ahead of national trends.

      However, leaders remain alert to the risks that accompany rapid technological advancement:

      • 75% cite increasing cyber threats.
      • 51% highlight rising operational risks.

      These concerns reinforce that progress must be matched with robust risk management.

      Fuelling the UK’s talent

      Talent acquisition also reveals the positive ambition: 56% of London businesses are confident about hiring, 7% higher than the national average, while only 18% face recruitment challenges versus 24% nationally. The capital’s businesses are well-positioned to attract, retain, and develop skilled professionals, supporting continued growth and resilience.

      These insights highlight London’s pivotal role in driving the UK’s ambition in talent, technology, and innovation. As the capital accelerates, the rest of the country has an opportunity to harness this momentum and fuel their own regional growth.

      Read the full findings in the Private Enterprise Barometer 2026 to explore how these trends are shaping the UK’s economic future.

      Download the complete KPMG Private Enterprise Barometer 2026 to access in-depth analysis, practical strategies, and expert perspectives on the trends shaping the future of UK private businesses.
      Read your copy now and be part of the conversation shaping the next chapter of UK private enterprise.
      Download now

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