A major new Retail Investor Sentiment survey, carried out for the British Chambers of Commerce (BCC) Insights Unit, immediately after the Chancellor’s Mansion House speech, shows increased optimism that could be harnessed to grow the UK economy.

Over 2,500 investment platform users were polled by Find Out Now on behalf of the BCC last week, with over half (53%) saying they are optimistic about their investments over the next twelve months. That compares with a figure of only 42% when the same question was asked back in May.

The research was carried out following the Chancellor’s speech on 15 July, where she spoke about working with the financial regulator to support more private investors in UK businesses.

The survey shows clear signs of investor confidence, with 40% of respondents saying they will invest more cash over the next year. 47% expect to keep their investment levels to stay the same, and 8% expect to decrease.

Younger investors are the most confident. Of those aged 30-39, 56% expect to invest more in the next year, while the figure for 18–29-year-olds is 52%. Meanwhile, the portfolios of younger investors are broader, with 28% of 18–29-year-olds investing in crypto, compared to just 8% of 55–64-year-olds. Younger investors are increasingly active in tracking their investments with over a third (34%) of 18–29-year-olds checking their online accounts several times a week.

The research shows a clear appetite from the public to invest in UK equities. Over half (51%) of respondents said they would use a UK Growth ISA, rising dramatically to 76% of 18–29-year-olds. The UK Growth ISA is a key policy recommendation from the BCC in our recently published Blueprint for Growth.

David Bharier, Head of Research at the British Chambers of Commerce, said:

“Retail investors alone will not resolve the structural challenges facing UK public equity markets and the wider economy. But they need to be part of the answer.

“Our research shows individual investors are increasingly optimistic, with many planning to increase their investments over the next 12 months. It’s crucial that the Government taps into this growing investor appetite. An additional allowance to invest in UK equities would help more of the public drive activity back into the market.

“Right now, most retail investor attention goes overseas, drawn by the clarity and momentum of US success stories. But with the right incentives, their energy, enthusiasm and growing sophistication could breathe new life into UK equities.

“As our research shows, a new generation of investors is emerging with a much bigger appetite – the UK needs to be ready for them. Businesses, and the wider economy, will reap the benefits.”

Tyron Surmon, Head of Research at Find Out Now, said:

“With the FTSE 100 recently reaching a record-high, our survey results will be encouraging for the government as they try to get more people to invest in the stock market.

“Our survey found a significant boost in optimism among retail investors compared to earlier this year, and a majority of them saying they would be willing to get a ‘UK Growth ISA’ – they just need the government to take the first step.”