What the evidence means
The ONS Business Insights and Conditions Survey is voluntary. The denominator is trading businesses responding to the cash-reserves question.
BICS weighted business survey estimate.
G&G verified business evidence
Trading UK businesses with over six months of cash reserves
In late June 2025, 26% of trading UK businesses expected their cash reserves to last for more than six months.
26
percent
Original source
Office for National Statistics
Business insights and impact on the UK economy: 3 July 2025
The bulletin reports 26% expected cash reserves to last more than six months.
View original evidence
Office for National Statistics. Business insights and impact on the UK economy: 3 July 2025. 3rd of July, 2025. https://www.ons.gov.uk/businessindustryandtrade/business/businessservices/bulletins/businessinsightsandimpactontheukeconomy/3july2025
Why this matters to UK SMEs
More than six months of reserves can provide time to absorb disruption or invest deliberately, but the survey result does not define an ideal reserve level. SMEs need a policy that reflects their volatility, fixed commitments, access to finance and risk tolerance.
Key breakdowns
In late June 2025, 26% of trading businesses expected their cash reserves to last more than six months, while 16% reported no cash reserves. Both figures were broadly stable compared with late March. Wave 135 received 10,615 responses from 38,920 sampled businesses.
How to interpret this evidence
Expected reserve duration is a respondent assessment under current assumptions, not a verified forward cash balance. A longer duration may reflect strong liquidity, low fixed costs or cautious spending; it does not by itself show profitability, investment capacity or financial efficiency.
Limitations
The voluntary BICS estimate is a dated snapshot and excludes some industries. It does not standardise how respondents calculated reserve duration, include the size of facilities or distinguish restricted from readily available funds. Sector and size differences are not represented by the headline percentage.
Practical considerations
G&G perspective: define a reserve range from realistic downside scenarios and unavoidable commitments. Separate operating cash from tax and other restricted amounts, document when reserves may be used, and pair the policy with debtor management, suitable facilities and clear replenishment triggers.