Despite the government’s lofty pledges to be the “start-up hub of the world,” confidence has fallen so low that only 17 per cent of owners would advise a young entrepreneur to start their business in the UK today, says Matthew Elliott

When entering government, Sir Keir Starmer stated that wealth creation would be his “number one priority”. Launching the government’s industrial strategy, the Prime Minister doubled down, pledging to “make Britain the best place to do business”.

Rachel Reeves echoed this sentiment in her Budget last year, declaring: “Growth begins with the spark of an entrepreneur… our job is to make Britain the best place in the world to start up, to scale up, and to stay.”

These are noble goals. Yet, as we move into 2026, a chasm is widening between these aspirations and the grim reality facing the nation’s wealth creators. The latest data suggests that for those actually running businesses, these words ring hollow.

A landmark survey of 1,150 family businesses and farmers conducted for the Jobs Foundation by Whitestone Insight has revealed a historic wave of pessimism. A staggering 78 per cent of family business owners are now pessimistic about the UK economy.

Free Thinking - City AM Opinion Newsletter

Get weekly sparky insight........

© City A.M.