UK Business Climate Survey 2025: Cautious optimism in an evolving market
11 September 2025
As the UK navigates a shifting economic and political landscape, the sixth edition of the Business Climate Survey reveals that Swedish businesses’ perceptions of the UK market are growing more complex. Where resilience once defined the outlook, this year’s findings point to a more cautious optimism among Swedish businesses.
Each year, Team Sweden – consisting of the Swedish Chamber of Commerce for the UK, Business Sweden, and the Embassy of Sweden in London – joins forces to deliver the UK Business Climate Survey. Together, we gather valuable perspectives on both the opportunities and challenges encountered by Swedish businesses operating across the United Kingdom.
Profitability holds firm in uncertain times
The 2025 survey reveals that Swedish business in the UK have stayed resilient amid the growing uncertainty and evolving markets. For the third consecutive year, 60 per cent of respondents reported their financial performance as profitable, demonstrating remarkable consistency. Looking to the year ahead, company representatives in the UK also express a sense of optimism about industry turnover, as 77 per cent of respondents expect industry turnover to increase.
Evolving perceptions of the business climate
While 70 per cent of the responding businesses continue to perceive the UK business climate as neutral or positive, there is a subtle shift towards greater caution. Only 25 per cent describe the climate as “good” or “very good”, and 24 per cent view it as “poor” or “very poor”. This nuanced outlook reflects both the challenges and cautious optimism Swedish companies are experiencing as they adapt to new regulations, shifting trade relations, and changes in the UK labour market.
Sustainability: a shift in perception
A notable trend in this year’s survey is a decline in the perceived importance of sustainability in purchasing decisions. While environmental considerations remain influential, only 68 per cent of companies now believe UK customers actively factor them into their decisions, compared to 90 per cent last year. Several respondents expressed a desire to invest further in sustainability, but noted a lack of clear incentives and consistent governance. Many also observed that, despite consumers stated intentions, actual purchasing behaviour often fails to reflect sustainability priorities when price is a factor.
Looking forward
As the UK market continues to evolve, Swedish companies are focusing on the qualities that drive lasting success. This year’s survey highlights that building strong partnerships, strengthening brand awareness, and close collaborating with clients are seen as the top factors for competitiveness. Companies are also prioritising sales competence, cost efficiency, and staff development to stay agile and innovative. By cultivating these strengths, Swedish businesses are well prepared to meet new challenges and capture emerging opportunities in the UK’s dynamic market.
