UK mid-market confidence rebounds as firms await signals from Autumn Budget
UK mid-market confidence rebounds as firms await signals from Autumn Budget
- Confidence up among mid-market companies as they end the year on a stronger footing
- Mid-market now increasingly investing in AI, with 77% planning to maintain or grow headcount while adapting their skills mix
- Mid-market leaders calling for stability and targeted support on costs ahead of Autumn Budget
Confidence among Britain’s mid-sized companies has rebounded, according to new research from accounting and business advisory firm BDO. In the bi-monthly survey of over 500 mid-sized business leaders, more than half (57%) are now confident about their business’ growth prospects over the next 12 months, up from 45% in June.
While conditions remain difficult, the findings suggest many mid-market firms are seeing out the year on a firmer footing after a prolonged period of pressure and uncertainty, positioning 2026 as the year when AI investment comes to the fore.
2025 has been a year of transition, with the majority (54%) of companies now actively investing in AI and a further 44% exploring how it could support operations. The focus has shifted, from whether to adopt new tools, to how to embed them effectively across the business. For example, more than half (52%) now use AI daily in their tax processes.
Many have adjusted hiring as they rebalance operations around AI and new technologies: 61% of firms hired fewer people overall, while a smaller group (32%) maintained headcount but for different roles.
Looking ahead, 2026 is expected to mark a new phase as AI reshapes workforces more visibly. Around three in five (61%) firms plan to keep overall headcount steady but change the mix of roles. A further 16% expect to increase hiring, while only a fifth (21%) expect to hire fewer people. The figures suggest that rather than triggering job losses, AI is prompting a gradual shift in skills and responsibilities as firms integrate it more deeply into their operations.
Business wants stability from the Autumn Budget
As the mid-market looks to consolidate this progress, attention is turning to the Autumn Budget. Mid-market leaders are calling for stability and a policy framework that supports investment and cost control, rather than sweeping reform.
When asked which measures would most support growth, firms prioritised practical cost relief: targeted incentives to cut energy and input costs topped the list at 24%, followed by business rates reform (22%), improved capital allowances (20%) and clearer R&D reliefs (20%).
A quarter of mid-sized companies want a three-year moratorium on business tax changes, a signal of how highly companies value predictability.
Richard Austin, partner at BDO, said: “The UK’s mid-market has absorbed several years of economic uncertainty and is now showing real resilience. Confidence is improving, investment in technology is becoming routine and firms are rebalancing rather than retreating.
“For companies investing in technology and reshaping operations, the ability to plan with confidence is now critical. There is a strong desire among businesses for no further changes to taxation at the Autumn Budget to encourage investment. What the mid-market needs is consistency from government: a stable policy environment that turns momentum into lasting growth.”
ENDS
Note to editors
BDO LLP operates in 18 offices across the UK, employing 8,000 people. It has UK revenues of £1bn.It provides Audit, Tax, Deals, and Consulting, Risk & Outsourcing services predominantly to mid-sized, entrepreneurially-spirited, high-growth businesses that are driving growth in the UK economy. BDO calls this segment of the market the UK’s economic engine.
BDO LLP is the UK member firm of the BDO international network.
BDO’s global network
The BDO global network provides business advisory services in 166 countries and territories, with more than 119,000 people working out of 1,800 offices worldwide. It has revenues of US$15bn.
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