UK businesses are facing growing financial pressures as concerns over rising energy and fuel costs reach record levels, while the adoption of artificial intelligence (AI) continues to accelerate across the economy.
The latest data from the Office for National Statistics (ONS) highlights the challenges facing businesses as they navigate increasing operating costs, supply chain uncertainty and climate-related risks, alongside opportunities to improve efficiency through new technologies.
For small and medium-sized enterprises (SMEs), understanding these trends is essential when planning budgets, managing cash flow and making decisions about future investment.
Rising energy and fuel costs put pressure on businesses
Energy prices remain a significant concern for UK businesses. According to ONS data for late September 2026, 72% of businesses were concerned about energy prices, the highest proportion recorded since the question was introduced in March 2026.
The accommodation and food services sector reported the greatest level of concern, with 91% of businesses worried about energy costs. For businesses operating in energy-intensive environments, these rising expenses can have a direct impact on profitability.
Fuel costs are creating further pressure. Nearly three-quarters of businesses (73%) expressed concern about rising fuel prices, representing the highest level recorded since the measure was introduced in May 2026.
The transport and storage sector was particularly affected, with 60% of businesses describing themselves as very concerned.
For businesses already managing tight margins, these increases may mean reviewing budgets, reassessing supplier arrangements and identifying opportunities to reduce overheads.
Economic growth outlook remains uncertain
Despite these concerns, the International Monetary Fund (IMF) has upgraded its forecast for UK economic growth, predicting expansion of 1.3% in 2026, compared with its previous forecast of 1% in July.
However, the outlook remains challenging. Both the ONS findings and the IMF’s assessment point towards the potential impact of higher energy prices and interest rates on the economy in 2027.
Businesses should therefore remain cautious when planning ahead, particularly when considering major expenditure, recruitment or expansion.
Maintaining a clear understanding of cash flow and regularly reviewing financial forecasts can help businesses prepare for changing economic conditions and make informed decisions.
Supply chain disruption remains a concern
Supply chain uncertainty continues to affect businesses across the UK, with international conflict identified as the most commonly reported risk.
The ONS found that:
- 32% of businesses cited international conflict as a potential supply chain risk.
- 21% highlighted shipping disruption.
- 48% of businesses employing 10 or more people reported concerns about at least one factor that could affect their supply chains over the next year.
Although the overall proportion was little changed from August, it was 17 percentage points higher than a year earlier.
These findings highlight the importance of businesses understanding their supply chains and considering how external events could affect the availability and cost of goods and services.
Reviewing supplier arrangements, considering alternative suppliers and building flexibility into financial planning may help businesses manage unexpected disruption.
Climate-related concerns continue to rise
Environmental risks are also becoming an increasingly important consideration for UK businesses.
The ONS reported that 41% of businesses were concerned about the potential impact of climate change on their operations, the highest level recorded since February 2023.
Climate-related disruption can affect businesses in several ways, including interruptions to supply chains, increased insurance costs and changes in the availability or price of essential resources.
Understanding these potential risks can help businesses make more resilient long-term plans and identify where changes to their operations may be necessary.
AI adoption accelerates across the UK economy
While businesses are facing increasing costs and uncertainty, the use of artificial intelligence is growing rapidly.
Around 30% of UK businesses reported using at least one form of AI technology in September 2026, more than three times the 9% recorded when the question was first asked in September 2023.
Adoption is particularly strong among larger organisations. Some 51% of businesses employing 250 or more people were using AI, compared with 19% three years earlier.
AI is increasingly being used to support business processes, improve productivity and reduce the time spent on routine tasks. For SMEs, these technologies may offer opportunities to streamline operations and make better use of existing resources.
However, businesses should consider the costs of implementation, staff training, data protection and appropriate oversight when deciding whether AI is right for their organisation.
Administrative roles among those most affected
The growing use of AI is also changing the way certain tasks are carried out.
Among businesses using AI and employing at least 10 people, administrative and clerical roles were the occupations most frequently identified as being affected by the technology.
Some 38% of these businesses identified administrative and clerical roles as the most impacted, up from 35% in June 2026 and 29% when the question was introduced in December 2025.
This suggests that routine administrative processes are an important area of change as businesses explore how AI can support their operations.
For employers, the challenge is to understand where technology can add value while ensuring staff have the training and support needed to adapt.
What does this mean for SMEs?
The latest figures highlight the importance of balancing cost control with investment in future growth.
Businesses may wish to consider the following actions:
- Review operating costs: Identify areas where energy, fuel and supplier costs are increasing and assess whether savings can be made.
- Monitor cash flow: Update financial forecasts regularly to understand how rising costs could affect working capital and profitability.
- Assess supply chain risks: Review key suppliers and consider contingency arrangements where disruption could affect operations.
- Explore AI opportunities: Identify routine tasks that could be completed more efficiently through automation or AI.
- Plan for the long term: Consider economic uncertainty and climate-related risks when making investment and business planning decisions.
Taking a proactive approach can help businesses respond to immediate pressures while continuing to invest in their future.
How Bryden Johnson can help
Rising operating costs and economic uncertainty make effective financial planning more important than ever. Understanding your business’s financial position can help you identify potential risks, manage cash flow and make informed decisions about future investment.
At Bryden Johnson, we provide practical and professional advice to help businesses understand their finances, plan ahead and work towards their business objectives.
If you would like support with your business finances, cash flow forecasting or future planning, please contact our team on 0208 686 0255.