UK businesses split on whether Keir Starmer should step down amid slight fall in economic pessimism

• Pessimism about the economic outlook has fallen by 9ppts among the general public since December, and business concern about the economy has fallen by 9 ppts since November, but both are still high (64% and 80% respectively).
• Businesses are evenly split on whether Keir Starmer should step down as Prime Minister, 47% saying he should stand down and 46% saying he should continue (among the public 52% thought he should stand down and 37% remain).
• Only 26% of businesses are satisfied with Chancellor Rachel Reeves' performance, and only 16% of the public think she is doing a good job, though both are up slightly since November 2025.
• The public are most likely to blame decisions made by the current PM and Chancellor for the poor state of the economy (66% of those who think the economy is in a poor state).
• Unemployment has now become one of the top three indicators for the public over the state of the economy, along with interest rates and the cost of living, while businesses want the government to focus on reducing the taxes they pay and the help with the cost of living

Key findings

Slight improvements in economic outlook among businesses and the public over the last few months, but pessimism remains high.

• Our long-running Economic Optimism (telephone, fieldwork 4-10 February) finds 64% of the general public expect the economic condition of the country to get worse over the next 12 months (down 2 points since January, itself a 7 point drop since December). Only 13% expect it to improve (+1 since January).  The level of net economic optimism this month (-51) remains well below the long-term average of -18.
• In our online polling with the public, we find 72% say the state of the economy is poor (-12 points since November 2025), while one in four (25%) say it is good (+11).  

• Among UK businesses with an annual turnover of over £250,000 (interviewed online), 44% say the economic condition of the country will get worse over the next 12 months, while 29% say it will improve. Concern about the economic outlook continues to be high at 80%, but has dropped 9 points since November 2025. 18% say they are not concerned (+8). 

  
  Economic policies

• Two in five UK businesses say the government’s economic policies will benefit them, their region, and their sector (each 40%), but senior financial decision makers are split on whether they will benefit themselves personally (33% agree, 34% disagree).
• 72% of the general public say the state of the economy is poor. Of those who do, most blame decisions made by the current PM and Chancellor (66%, +7 since October 2025). 

Improved, but still negative ratings for Reeves, as businesses split on whether Starmer should step down.

• Among UK businesses, Nigel Farage leads on leader satisfaction with 43% of businesses satisfied with his job as leader of Reform UK, with 36% dissatisfied (+7 net satisfaction). A third (34%) are satisfied with Keir Starmer as PM (+8 since November 2025), with 47% dissatisfied (-13 net satisfaction). A quarter (26%) are satisfied with Rachel Reeves as Chancellor (+3) with 47% dissatisfied (-21 net satisfaction).  
• Nearly half of businesses (47%) say Keir Starmer should step down as Prime Minister, while virtually the same proportion (46%) say he should continue in his role. In a poll with the general public 24-25 February, 52% thought he should stand down and 37% continue.
• Among the general public, half (49%) say Reeves is doing a bad job as Chancellor (-6 since November 2025), with 16% saying she is doing a good job (+5).  
• Over half of the public (54%) say Reeves’ decisions have made them less confident that the economy will grow, virtually unchanged since November 2025 (+1). 16% say they made them more confident and 21% that they made no impact. 

No party stands out on the economy

• Among UK businesses, there is a 3-way tie between Labour, Reform and the Conservatives on having the best policies for managing the economy (Conservatives 23%, Reform UK 22%, Labour 20%) or for businesses (Reform 23%, Conservatives 21%, Labour 20%). And nearly one in five say none of the parties or they don’t know which one has the best policies.  Labour are slightly ahead (25%) of Reform (19%) on having the best policies for people in work, with Conservatives a close second (23%). 

• Three in ten (30%) of the public are confident Reform UK have a good long-term economic plan for Britain, with three in five (60%) not confident. 28% are confident in the Conservatives (62% not confident) and 24% in Labour having a good long-term economic plan (71% not confident).  

Public split on taxation as businesses lean towards tax cuts.

• Businesses lean towards wanting the Chancellor to cut taxes on their business even if it means reducing spending on public services (43%) or reducing long-term investment spending (42%). Nonetheless, over a third are willing to pay more tax if it means increased spending on public services, or increased long-term investment spending (both 35%).
• Businesses want the Government to prioritise reducing taxes paid by businesses (36%) and help with the cost of energy (32%), followed by reducing employment costs (20%), removing regulations (18%) and sticking  to long-term policy commitments (17%).  
• Just over a third of the public (36%, unchanged since November 2025) want the Chancellor to cut taxes they pay personally, even if it means spending less on public services, while 33% (+3) want increased spending on public services even if it means higher taxes for them.  
• When the public are asked what influences their views on the economy, 62% say inflation (up 8ppts since last March), 43% interest rates (-2 ppts), and 42% unemployment (up 12ppts).

Commenting on the findings, Gideon Skinner, Senior Research Director of UK politics at Ipsos, said:

Our latest economy polls highlight the challenges this Government is facing ahead of the Spring Statement in reassuring the public and businesses of its economic plan. Despite some signs of economic anxieties slightly easing, Rachel Reeves’ ratings continue to be low. There is a clear mandate from businesses for  clearer policy direction and cuts to taxes and the cost of energy and employing workers, yet no party stands out for their economic plans, with Labour, Reform and the Conservatives in a three-way tie among businesses, and not much confidence in any of the parties among the public either. The general public remain very focused on the level of inflation as a key economic indicator, but their attention is turning to unemployment levels as well, which highlights the need for the government to deliver economic growth to improve their position.

Technical Note: 

• Ipsos Economic Optimism: Ipsos interviewed a representative sample of 1,004 adults aged 18+ across Great Britain. Ipsos’ telephone omnibus was used for this survey. Interviews were conducted between 4 – 10th February 2026
• Online general public poll: Ipsos interviewed a representative sample of 1,002 British adults aged 18-75. Polling was conducted online between 20-23 February.
• Business poll: Ipsos interviewed a representative sample of 1,164 senior decision makers, representing UK businesses with annual turnover of £250,000 or more. Polling was conducted online between 2nd-19th February 2026.
• Data are weighted to match the profile of the population. All polls are subject to a wide range of potential sources of error.