Reasons for optimism

Despite the commercial pressures and increasing tax demands, there are positive signs in parts of the economy. Official statistics published over the past year show increased investment in early-stage businesses, greater use of tax-efficient savings and growth in qualifying R&D expenditure. Alongside an increase in registered business numbers and substantial tax support for the creative industries, these developments provide some grounds for optimism.

Seed investment

HMRC’s May 2026 statistics show that 2,430 companies raised £276m through the Seed Enterprise Investment Scheme (SEIS) in 2024/25, a 14% increase in funding compared with the previous year. The figures are encouraging for entrepreneurs seeking capital and investors looking to support qualifying early-stage businesses.

Tax-efficient savings

ISA subscriptions also increased substantially. Figures published in September 2026 show that £135.7bn was subscribed to adult ISAs in 2024/25, £32.7bn more than in the previous year. Although cash ISAs accounted for most of that increase, subscriptions to stocks and shares ISAs rose by 19.7%. Total adult ISA holdings reached £952bn, demonstrating the continuing importance of these tax-efficient vehicles for personal saving and investment.

Growth in business numbers

ONS figures published in September 2026 show that the number of VAT and/or PAYE-registered businesses reached 2.79m in March 2026, an increase of 1.9% over the preceding year. Every UK region recorded an increase in registered business numbers for the first time since 2017. While this measure does not capture the entire business population, the breadth of the increase is an encouraging sign of business activity across the country.

Support for the creative industries

The UK’s creative industries continue to benefit from substantial tax support. HMRC’s September 2026 statistics recorded £2.45bn of tax reliefs and expenditure credits was paid out in 2024/25, including £936m for high-end television, £395m for video games and £258m for theatre. These figures illustrate the scale of support available through the tax system to qualifying businesses and productions across the creative sectors.

Increased R&D expenditure

HMRC’s September 2026 statistics provisionally estimate that qualifying R&D expenditure associated with tax relief claims increased by 7% to £51bn in 2024/25, while total relief claimed rose by 5% to £8.2bn. The picture is mixed: claim numbers fell, particularly among SMEs, and the figures reflect significant changes to the relief schemes. Nevertheless, the increase in qualifying expenditure and aggregate tax support provides a positive indication of continued investment in research and development.