UK Dealmaker Confidence Hits Decade Low Amid Government Credibility Crisis

What's Happening?

A recent survey by CIL has revealed that confidence among UK dealmakers is at a decade low, with only 13% of stakeholders expressing a positive outlook for the next 18-24 months. The decline in confidence is attributed to dissatisfaction with government policies and global economic volatility, including trade tensions and geopolitical issues. The UK mergers and acquisitions (M&A) market saw a 12.3% decline in deal value in the first half of 2025 compared to the previous year, with deal volume also decreasing by 19.1%. The survey indicates a historic crisis in confidence, with 72% of respondents critical of the government's handling of economic challenges.

Why It's Important?

The drop in dealmaker confidence reflects broader concerns about the UK's economic stability and government effectiveness. This sentiment could lead to reduced investment and slower economic growth, impacting the UK's position in global markets. The government's ability to address these concerns and restore confidence will be crucial for attracting investment and fostering economic recovery. The survey results highlight the need for effective policy measures to support the M&A market and enhance economic prospects.

What's Next?

The UK government may face pressure to implement policy changes to improve economic conditions and restore confidence among dealmakers. This could involve addressing trade policy issues and enhancing support for the M&A market. The survey results may influence government strategies and economic planning, with potential implications for fiscal policy and international trade agreements.

Beyond the Headlines

The survey underscores the importance of government credibility in shaping economic outcomes. The decline in confidence among dealmakers highlights the impact of political stability on investment decisions. The government's ability to address economic challenges and restore confidence will be crucial for maintaining the UK's competitive edge in global markets.