A new report warns that business confidence has reached its lowest level in nearly four years, according to findings shared by a leading accountancy firm.
Cumbrian accountancy firm Lamont Pridmore has highlighted a sharp decline in confidence across the North West and wider UK, citing the impact of global uncertainty, rising costs, and heavy tax burdens on businesses.
The findings are based on the latest Business Confidence Monitor from the Institute of Chartered Accountants in England and Wales (ICAEW).
Graham Lamont, chief executive of Lamont Pridmore, said: "These figures confirm what many of our clients have been telling us.
"Just as businesses were starting to feel more settled, the conflict in the Middle East has knocked confidence again and the impact on energy costs is being felt right across the region.
"Our clients are resilient and used to handling uncertainty, but this is now a sixth successive quarter of negative sentiment nationally.
"Combined with rising employment costs and an unforgiving tax burden, many owners are understandably cautious about their plans for the year ahead."
The ICAEW’s national confidence index fell to -14.6 in the second quarter of 2026, marking its weakest level since late 2022 and matching the longest period of negative sentiment since the global financial crisis.
Contributing factors include the outbreak of conflict in Iran and the closure of the Strait of Hormuz, which sent energy prices soaring and disrupted supply chains.
Geopolitical risk was cited by 65 per cent of survey respondents as a key challenge, making it the most significant concern among those tracked.
The North West recorded the largest single-quarter drop in business confidence of any UK region, falling from +9.9 to -14.3—a 24.2-point decline.
This figure sits well below the region’s historical average of +5.6 and closely matches the national average.
The survey, which polled 1,000 ICAEW Chartered Accountants, also highlighted ongoing financial pressures for businesses.
Late payment concerns reached a five-year high in the region, with 24 per cent of businesses reporting issues.
Input price inflation rose to 4.1 per cent, and companies expect to increase prices by a further 2.4 per cent over the next year.
This sustained rise in costs is limiting cash flow and exacerbating late payment problems throughout the UK supply chain.
As a result, annual profit growth slowed to 2.8 per cent, below the long-term average of 3.1 per cent, with firms revising down their expectations for the coming year.
Chris Lamont, director at Lamont Pridmore, said: "The good news buried in this data is that the US-Iran deal reached towards the end of the survey period should ease some of the pressure on energy prices.
"However, with continued political uncertainty in Westminster and household energy bills still set to rise further from July, businesses cannot afford to be complacent.
"Now is the time to review cost bases, tighten credit control and take proper advice on managing the tax and employment cost pressures coming down the track."
Lamont Pridmore serves clients across the North West and beyond.
Anyone interested in its full range of accounting, tax, and business advisory services can visit lamontpridmore.co.uk for more information.
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