Uncertainty holds back business investment: see Brexit for example. The November Bank of England Monetary Policy Report, p.20, shows this chart:
and says
"Measures of business confidence have recovered a little over recent months but many remain
weak, and contacts of the Bank’s Agents note that investment intentions are subdued (ASBC
– November 2025 and Chart 1.8). Contacts report that weak demand and elevated
uncertainty, including ahead of the Autumn Budget, may be causing firms to delay investment.
Consistent with that, the proportion of respondents to recent DMP Surveys reporting that the
overall level of uncertainty facing their businesses is high or very high has been around its
highest level since end-2022."
