Uncertainty has become a defining feature of Britain’s business landscape, with the vast majority of leaders warning it is now directly affecting performance and decision-making, according to a new report.
Research by Luther Pendragon, conducted in partnership with Survation, found that 88 per cent of business leaders say uncertainty is impacting their organisation or sector.
The report, Navigating the new age of uncertainty, suggests the problem is both persistent and intensifying. More than seven in ten executives (71 per cent) said uncertainty has either increased or remained elevated over the past year.
Simon Maule, Chief Executive Officer at Luther Pendragon, said: “Ongoing conflict in the Middle East continues to disrupt global markets and oil prices, adding a persistent layer of uncertainty for UK firms.
“This geopolitical instability is driving higher cost pressures and intensifying concerns around supply chains and energy security, all of which are critical factors in strategic business decision making.
“At home, uncertainty is being driven by domestic political instability. With the upcoming local elections on 7th May, leaders say they lack clarity on the future direction of economic policy, taxation and regulation. This backdrop is reinforcing caution, particularly where decisions depend on long‑term policy signals or government support.”
The effects are being felt most acutely at the top of organisations. More than a quarter of chief executives (28 per cent) and over a third of chief financial officers (36 per cent) said uncertainty is significantly affecting their businesses.
Business leaders point to a combination of domestic and global pressures driving the trend. Half cited inflation and interest rates as key concerns, while others highlighted rapid technological change, shifting tax policy and a volatile geopolitical backdrop.
The report also identifies softer pressures compounding the problem, including information overload and the spread of misinformation, which executives say are making it harder to plan with confidence.
The impact is increasingly visible in corporate decision-making. Almost a third (31 per cent) of leaders said uncertainty has led them to delay decisions, rising to 41 per cent in the technology sector. In financial services, more than a quarter reported having to revisit and change decisions before implementation.
Crucially, many of the delayed decisions relate to areas central to economic growth. Around 38 per cent of leaders said they had postponed plans for market expansion or capital investment, while 30 per cent had delayed research and development activity.
The findings raise fresh concerns about the UK’s growth prospects, suggesting that a climate of sustained uncertainty is weighing not just on sentiment, but on the investment and innovation needed to drive the economy forward.
He added: “Business leaders are understandably hesitant when it comes to making major decisions. However, forward thinking leaders are responding by investing more heavily in horizon scanning and market intelligence services.
“We’re also seeing more organisations commit to regular scenario planning, working hard to plan for multiple, plausible future outcomes. Together, these actions help businesses regain a sense of control and encourage decision making that is more likely to support long-term opportunity rather than reacting to short-term noise.”
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