US-UK Business Confidence Shows Modest Recovery as Companies Seek Greater Policy Certainty

The 2026 Transatlantic Confidence Index from BritishAmerican Business (BAB) and Bain & Company, which surveyed 74 leading transatlantic companies, reveals a modest recovery in confidence in the transatlantic economy following last year's sharp decline.

The overall Index, which remained stable at 7.0-7.2 out of 10 between 2021 and 2024 before falling to 6.6 last year, edged up to 6.7 in 2026. While investment intentions remain strong on both sides of the Atlantic, businesses continue to raise concerns about tax, regulation, energy costs and policy predictability.

US companies report slightly higher confidence in the UK

US companies' confidence in doing business in the UK edged up from 6.3 in 2025 to 6.4 this year, following last year's fall to the lowest level since the Index began.

Despite the slight improvement, US investors continue to raise concerns about the UK's domestic business environment. Tax and the cost of doing business remain significant concerns, while energy supply and costs – included in the survey for the first time – were viewed just as negatively as tax.

US businesses are calling for a more competitive environment for investment. 35 per cent ranked a flexible, predictable and business-friendly regulatory and tax environment as their number one priority, while 75 per cent placed it in their top three.

Businesses also want to see regulatory reform and simplification, delivery of the UK's industrial strategy and planning reforms, and greater certainty around energy supply and costs. 92 per cent of US respondents rated the implementation of a pro-growth agenda at seven out of ten or higher in importance to their future investment in the UK.

Despite these concerns, US companies remain committed to the UK market, with most respondents expecting to maintain or increase their investment over the next two to three years.

Perceptions of the UK's political stability also deteriorated, with its net attractiveness score falling from +37 in 2025 to -12 this year. The survey was conducted as expectations of a change in political leadership were growing, and before the new Prime Minister took office. Confidence in the UK-EU relationship also slipped from 6.6 to 6.2.