Strategy | Why British businesses are stuck in survival mode

Short-term pressures are crowding out the long-term investment needed to stay competitive, according to the latest research.

MHR’s 2026 survey of more than 1,000 UK business decision-makers, in partnership with the Telegraph Media Group, has revealed a widening gap between leaders’ strategic ambitions and their agility to achieve them.

The death of long-term planning

Over half of business leaders admit that short-term pressures are actively preventing them from investing in long-term strategy, while 54% say they are reluctant to greenlight projects where a return on investment cannot be delivered within two years. Rising operating costs combined with ongoing changes to employment rights have pushed many organisations into cost-cutting mode, a move that 55% of leaders say is damaging their ability to attract and retain talent.

This focus on short-term survival is also undermining technology investment and slowing meaningful transformation. Although 82% of organisations are already using or planning to use AI and automation, more than a third cite uncertain ROI as a major barrier to AI adoption. Nearly half are concerned their current IT infrastructure will not be able to support the next wave of innovation, highlighting a significant disconnect between ambitions and organisational readiness.