Navigating the new age of uncertainty – produced in partnership with Survation – finds that 71% of leaders believe uncertainty has increased or remained high over the past year, with the impact felt most acutely at the top of organisations. The report shows that 28% of CEOs and 36% of CFOs say that uncertainty is significantly affecting their business.
Simon Maule, Chief Executive Officer at Luther Pendragon, said:
“Ongoing conflict in the Middle East continues to disrupt global markets and oil prices, adding a persistent layer of uncertainty for UK firms. This geopolitical instability is driving higher cost pressures and intensifying concerns around supply chains and energy security, all of which are critical factors in strategic business decision making.
“At home, uncertainty is being driven by domestic political instability. With the upcoming local elections on 7th May, leaders say they lack clarity on the future direction of economic policy, taxation and regulation. This backdrop is reinforcing caution, particularly where decisions depend on long‑term policy signals or government support.”
The research shows that, alongside an unstable domestic and geopolitical climate, business leaders cite unfavourable inflation and interest rates (50%), rapid and disruptive technological change (34%), and fiscal and tax policy instability (32%) as major drivers of uncertainty, compounded further by information overload (24%) and rising misinformation (18%).
Uncertainty is significantly impacting decision making, including across sectors the Government has identified as target areas for growth. Just under a third (31%) of leaders report that uncertainty has led to decisions being delayed to allow for more clarity, but this rises to 41% in the technology sector. And while a quarter (24%) of leaders say uncertainty has led to decisions being reconsidered and changed before implementation, this increases to 28% in financial services.
Crucially, the decisions most likely to be delayed are those most vital for strong economic growth. Business leaders state that they have delayed or reconsidered decisions relating to market expansion (38%), capital investment (38%), and research & development (30%) due to uncertainty.
Simon Maule, Chief Executive Officer at Luther Pendragon, added:
“Business leaders are understandably hesitant when it comes to making major decisions. However, forward thinking leaders are responding by investing more heavily in horizon scanning and market intelligence services.
“We’re also seeing more organisations commit to regular scenario planning, working hard to plan for multiple, plausible future outcomes. Together, these actions help businesses regain a sense of control and encourage decision making that is more likely to support long-term opportunity rather than reacting to short-term noise.”