In total, 86pc of bosses in the region said they feel confident about their 2026 growth prospects, with almost two-thirds (64pc) set to invest in expansion plans.

The annual survey heard from 1,500 privately-owned businesses, including 125 in the East of England.

More than half (52pc) of firms in the East said the primary driver of their confidence is an increased demand for their products and services.

Two-fifths (43pc) said they plan to invest in new technology this year, with over a third (34pc) prioritising AI.

Nearly half of businesses (48pc) said Eastern Europe was their favoured destination for trade and expansion.

Joe Faulkner, East Anglia Office Senior Partner at KPMG UK (Image: David Johnson Photographic)

Joe Faulkner, East Anglia Office Senior Partner at KPMG UK, said: “What is really evident is the resilience of private businesses across the East of England.

“Even against a challenging global and domestic backdrop, firms are feeling positive about their growth prospects and are taking a proactive approach to the future.

“The focus on technology, data and diversification shows a region that isn’t standing still but actively investing to stay competitive and seize new opportunities.

"This ambition is exemplified by the Oxford–Cambridge Arc, which has the potential to be a key turning point for the East of England that connects three million people across one of the UK’s most highly skilled labour markets, significantly bolstering the region’s growth and capabilities and giving it the scale and confidence to rival the world’s leading business hubs, especially in technology and lifesciences.

"This, alongside the critical role other parts of the region play in areas like energy infrastructure, national and international logistics, agritech and fintech, give our business leaders a clear long-term rationale for optimism and investment.”

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