Two-thirds of UK businesses plan to increase headcount

An HSBC UK survey released on 12 October 2026 found that over two-thirds of British companies plan to raise their workforce in the coming year, while increasing borrowing to finance technology upgrades, product launches and expansion.

The YouGov survey of 1,029 leaders at UK businesses from start-up onwards found that, of those with annual turnover above £3 million, 68% expect headcount to rise, most commonly by 6% to 15%. Some 56% took on new borrowing or credit lines in the past 12 months, compared with 28% in 2025.

Businesses in the UK that are planning to expand in the next year are highly confident in their ability to achieve growth, with 87% expressing optimism, a rise from 80% the previous year. Furthermore, 56% of respondents are positive about the UK economy’s prospects over the next one to two years.

Companies are planning to utilize finance for various purposes, including digital technology, research and development, new product launches, and expansion into new markets. This comes at a time when 82% of businesses are focused on reducing costs and 79% are prioritizing cash flow and liquidity.

Among companies aiming for growth of over 20%, 84% expect to increase their workforce, with 55% anticipating growth of between 20% and 50%. Additionally, 56% of businesses are prioritizing the upskilling and training of existing employees, while 49% plan to hire experienced or specialist staff.

Companies targeting growth above 20% are more likely to have taken on new borrowing or credit lines in the past year, with 71% doing so, and 93% are comfortable with borrowing to support growth. These businesses are also more likely to consider finance options such as mergers and acquisitions, sustainable finance, and government or grant funding.

When selecting a borrowing provider, 78% of businesses consider factors such as reputation, financial strength, and security. Meanwhile, 76% value relationship expertise and advice, and 75% prioritize transparent pricing and fair terms. One third of businesses say that pricing could be a deal-breaker, while 41% would consider switching providers if their relationship manager fails to meet expectations.

James Cundy, Head of Mid-Market Corporates at HSBC UK, said: “Our research shows that for many UK businesses investing for growth remains a top priority. More than two-thirds expect to increase headcount, while borrowing is helping firms fund technology, new products and expansion. Cost pressures and uncertainty has not disappeared, but ambitious businesses are moving ahead regardless.”

HSBC UK’s second annual Financing for Growth report is due to be released on 21 October. The survey was conducted online between 30 July and 12 August 2026.