HSBC survey shows UK firms double borrowing in 2026

A HSBC UK survey of over 1,000 business leaders says borrowing rose sharply as firms tackle higher costs and fund technology and growth projects.

By Felo News Desk · Published Mon, 12 Oct 2026 00:44:24 GMT

A HSBC UK survey released in October 2026 indicates that 56% of UK business leaders took on new borrowing or credit arrangements in the past year, up from 28% in 2025.

What happened

The survey, which covered more than 1,000 leaders at UK companies, found that demand for lending doubled over the year. Respondents cited higher inflation, rising utility and labour costs, and a surge in fuel prices linked to the Middle‑East conflict as key pressures. The bank reported that 82% of firms listed cost reduction as a strategic priority, while 79% said cash‑flow and liquidity were top concerns.

What the reports add

Both Independent and Standard reported the same figures and quotations, noting that firms are turning to finance not only to manage costs but also to invest in productivity. The outlets highlighted that businesses targeting growth are more likely to use new finance for mergers and acquisitions, and that digital technology, research and development, product launches and market expansion rank as the top planned uses of the funds.

What was said

James Cundy, head of mid‑market corporates at HSBC UK, told the outlets that “some businesses will have borrowed to manage ongoing cost pressures” and that “evidence suggests that investment is becoming an increasingly important driver of borrowing demand.” He added that many firms are focusing on “productivity improvements through technology and workforce skills” and that others are using finance to pursue “consolidation opportunities and strengthen their market position.”

How it came about

The rise in borrowing follows a broader trend of increasing debt in the UK economy. Earlier this month Felo News reported that UK households had boosted borrowing to the fastest level in 33 years, driven by energy and fuel cost pressures (UK household debt surge). The same cost pressures are now reflected in corporate finance decisions, as firms seek both relief from higher operating expenses and capital for growth initiatives.

Key facts

56% of UK business leaders took new borrowing in the past year, up from 28% in 2025. (independent.co.uk)
The survey covered more than 1,000 UK business leaders. (independent.co.uk)
82% of firms said reducing costs was a strategic priority; 79% prioritised cash‑flow and liquidity. (independent.co.uk)
Top planned uses of new finance include digital technology, R&D, product launches and market expansion. (independent.co.uk)
James Cundy, head of mid‑market corporates at HSBC UK, commented on cost pressures and investment drivers. (independent.co.uk)