KPMG says over 80% of Yorkshire firms are optimistic on 2026

The survey captured the perspectives of 1,500 privately owned businesses across the UK, including 122 in Yorkshire, spanning sectors such as professional services, finance, technology, industrial manufacturing and retail.

Plans to introduce new technology were identified as the primary driver of confidence, cited by 52% of Yorkshire businesses – significantly above the UK average of 42%.

Digital transformation was also cited as a leading investment priority for 39% of Yorkshire businesses – mirroring the UK average and reflecting the region’s growing technology ecosystem.

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Diversification remains high on the agenda, with more than half of private businesses across Yorkshire (56%) planning to introduce new service lines and broaden their client offerings as they seek to unlock new revenue streams.

Appetite for international expansion is also high, with more than half of respondents (58%) confirming that appetite for international expansion has increased over the last 12 months

The appetite for alternative funding options is also strong, with over half of Yorkshire businesses (51%) now open to private equity investment, exceeding the UK average of 47%.

More broadly, over 60% of businesses are engaged with acquisitions in some capacity: 32% are actively pursuing acquisitions, while a further 32% are open to acquisition opportunities even if they are not currently seeking deals. The remaining 39% are focused solely on internal growth.

Phil Murden, Leeds Office Senior Partner at KPMG UK, said: “Businesses across the region are prioritising new technology and digital skills as a way to boost productivity and sharpen their competitive edge.

“This confidence is being reinforced by the strength of Yorkshire’s growing tech ecosystem, particularly in Leeds, alongside momentum behind initiatives such as the AI Growth Zone bids in York, North Yorkshire, South Yorkshire and Barnsley, which have the potential to accelerate innovation, support skilled job creation and strengthen collaboration between business and academia.

“Businesses are diversifying, exploring new markets and showing greater openness to alternative funding, all of which points to a region that refuses to stand still. Despite headwinds Yorkshire’s private businesses are confident. They are positioning themselves to grow and compete internationally.”