More than two-thirds of larger UK businesses expect to increase staff numbers over the next year as companies step up borrowing to finance technology, product development and expansion, according to a survey by HSBC UK.
The findings suggest that business investment and recruitment ambitions remain resilient despite persistent cost pressures and uncertainty over the economic outlook, with companies increasingly turning to external finance to fund their growth plans.
The survey of 1,029 UK business leaders found that 68 per cent of companies with annual turnover above £3mn expected to increase headcount, most commonly by between 6 and 15 per cent.
More than half of those businesses, 56 per cent, had taken on new borrowing or credit lines in the previous 12 months, almost double the 28 per cent recorded in 2025.
Among companies planning to expand over the next year, 87 per cent were confident they would achieve their growth targets, up from 80 per cent a year earlier. Just over half of all respondents said they were optimistic about the UK economy over the next one to two years.
Digital technology, research and development, new product launches and expansion into new markets were identified as the leading planned uses of finance, highlighting the importance of investment in productivity and competitiveness.
However, the appetite for expansion is unfolding alongside continued pressure to protect margins. Some 82 per cent of businesses identified reducing costs as a strategic priority, while 79 per cent said managing cash flow and liquidity remained a central concern.
The tension is particularly apparent among companies pursuing the most ambitious expansion plans. Of those targeting growth of more than 20 per cent, 84 per cent expected to increase headcount. Among that group, 55 per cent anticipated workforce growth of between 20 and 50 per cent.
Recruitment is only part of the strategy. Some 56 per cent of businesses prioritised training and upskilling existing employees, while 49 per cent planned to recruit experienced or specialist staff.
Companies targeting growth above 20 per cent were also more willing to use external finance. Nearly three-quarters, 71 per cent, had taken on new borrowing or credit lines during the previous year, while 93 per cent said they were comfortable borrowing to support expansion.
These businesses were also more likely to consider mergers and acquisitions, sustainable-finance products, capital markets and government or grant funding.
For lenders, the survey highlighted the importance of trust and service alongside the cost of credit. Reputation, financial strength and security influenced the choice of borrowing provider for 78 per cent of respondents, while 76 per cent cited relationship expertise and advice.
Transparent pricing and fair terms mattered to 75 per cent. A third said pricing could be a deal-breaker, and 41 per cent would consider switching providers if their relationship manager failed to meet expectations.
James Cundy, head of mid-market corporates at HSBC UK, said: “Our research shows that for many UK businesses investing for growth remains a top priority. More than two-thirds expect to increase headcount, while borrowing is helping firms fund technology, new products and expansion. Cost pressures and uncertainty has not disappeared, but ambitious businesses are moving ahead regardless.”
He added that HSBC UK would continue supporting viable expansion plans with finance, sector expertise and timely decisions.
Through its AI & Productivity Financing Initiative, eligible businesses can access funding on commercial terms to invest in technology, skills and systems intended to improve productivity.
The figures point to a business sector prepared to invest despite economic uncertainty. But with cost reduction and cash-flow management still high on corporate agendas, the challenge for companies will be to turn increased borrowing into sustainable growth without allowing financing and operating costs to undermine their ambitions.
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