Six in 10 UK businesses surveyed have increased investment to adapt to extreme heat or are considering doing so, according to Barclays.
The Q2 Barclays Business Prosperity Index found that 37% of firms had increased heat-related investment, while 23% were considering it.
Upgrading cooling equipment, including air conditioning and ventilation, was the most common priority, cited by 28% of businesses. A further 23% were adopting energy-efficiency measures to manage higher energy use.
Anonymised Barclays client data also indicated growing demand for cooling infrastructure. Cash inflows into Barclays accounts held by air conditioning suppliers rose by 4.3% year on year in the second quarter of 2026.
Businesses were also changing working practices during hotter periods. Some 28% had introduced employee wellbeing measures such as additional breaks, 23% offered flexible or remote working and 21% had adjusted working hours.
More than a quarter of small and micro businesses, at 27%, reported that hot weather had harmed productivity. Larger companies appeared more resilient, with 47% reporting a positive effect on productivity from warmer weather.
HOT WEATHER ALTERS CONSUMER SPENDING
The research suggested that rising temperatures were also changing demand and trading conditions for customer-facing businesses, particularly retailers.
The Barclays Consumer Spend report, which combines customer transaction data with consumer research, found that card spending increased by 2% year on year in July. This followed growth of 1.9% in June but remained below the latest CPIH inflation rate of 2.8%.
Spending at garden centres and clothing retailers rose by 2.4% in July, while expenditure at electronics stores increased by 1.5%. One in five consumers, or 20%, said they had bought light and cool summer clothes in response to the heatwave.
UK adults selected 24.6°C as their ideal summer temperature, which was 13.1°C below the record high recorded in 2026. Consumers said 25.1°C was the maximum temperature at which they would shop.
The corresponding thresholds were 24.2°C for commuting, 23.7°C for working from home, 22°C for sleeping, 24.7°C for cooking and 23.7°C for exercising.
Jason Constable, head of real estate at Barclays UK Corporate Bank, says: “As extreme heat becomes a more regular operational challenge, UK firms are investing in practical measures to stay resilient, from cooling systems and workplace upgrades to energy efficiency to manage higher energy use and employee wellbeing. For consumer-facing businesses, cooler and more comfortable premises can also help protect footfall, dwell time and day-to-day trading during hotter periods.
“That presents a clear opportunity for heating and cooling, retrofitting, facilities management, and wider sustainability providers. As demand grows across both business and consumer markets, these sectors can play an important role in helping firms adapt, protect productivity and build long-term resilience.”
Gavin Parker, head of property services at Barclays UK Corporate Bank, says: “As businesses invest in cooling, ventilation, energy efficiency and wider workplace upgrades, facilities management providers are well placed to help organisations adapt to the challenges of extreme heat.
“From retrofit projects to improving building performance, the sector has a key role to play in helping businesses protect productivity and employee wellbeing. As demand for these services grows, access to finance to support expansion and investment will be critical.
“Through initiatives such as the Barclays Business Prosperity Fund, we’re helping businesses invest in projects that strengthen resilience and support long-term growth.”
BUSINESS PROSPERITY FUND
The Barclays Business Prosperity Fund is available to new and existing Barclays Business Banking customers and UK Corporate Banking clients. Businesses across the UK can apply for lending and refinancing for existing projects.
