Monday 14 September 2026 5:07 am  |  Updated:  Thursday 10 September 2026 12:03 pm

How much do regulations cost the average UK business in 2026?

By: David Bharier

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No one single regulation is responsible for British businesses’ current woes; rather, the accumulation of taxes has become greater than the sum of its parts, writes David Bharier

The UK economy is trying to grow with a persistent brake on business investment. 

No single policy is responsible, but the accumulation of new costs and obligations has held business sentiment in the slow lane. Government assesses each measure individually, but no one checks their combined effect.

Our Quarterly Economic Survey, based on responses from more than 4,500 firms, shows the results of this. In Q2 2026, just 17 per cent increased their investment, the lowest reading since the pandemic. The share expecting turnover to improve over the next year has fallen to 44 per cent, down from 49 per cent. For hospitality firms, it’s now just 31 per cent.

Labour costs are cited as the top pressure driving prices and........

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