How much do regulations cost the average UK business in 2026?
No one single regulation is responsible for businesses' current woes. The accumulation of taxes has become greater than the sum of its parts.
The UK faces a growing challenge from the accumulation of regulations, with the latest figures showing that 17 percent of businesses increased investment in Q2 2026, the lowest rate since the pandemic. The BCC's Cost Stack Calculator reveals that, for a hypothetical firm with 50 employees and £5m turnover, the annual cost of regulation has risen by 71.5 percent, from £1.16 million in 2016/17 to £1.98 million in 2026/27.
Labour costs and taxes are the top concerns, with employer National Insurance increasing by 141 percent and auto-enrolment pension contributions up 442 percent. The true cost of the regulation stack is the investment that never happens, as businesses struggle to see how policies will enable growth, investment, and innovation.
Written by urgent.news from City AM's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.