Language barriers are costing London businesses over £426,000 per year – nearly £90,000 more than the national average (£338,900). For a city with a reputation as an international business hub, Londoners feel embarrassed when international colleagues feel the need to default to English in the workplace.
This is according to a new study of 2,500 workers, including 500 business leaders at UK companies that operate internationally, from DeepL, a leading global Language AI company. The study reveals that language barriers are choking productivity, damaging morale, and quietly sabotaging global growth.
From the study, here’s a breakdown of key statistics for London-based workers and business leaders:
- London businesses fear language barrier fallout: Nearly 6 in 10 London professionals (58%) believe the UK is falling behind other global economies due to language barriers in business.
- Londoners feel embarrassed about English as a lingua franca: 77% of Londoners have felt embarrassed when colleagues outside the UK default to English on calls or emails – and 53% say they regret not studying more languages at school because it’s now holding them back in their careers.
- Many Londoners believe that English dominance is outdated: 42% of Londoners say the idea that English is the global language of business is simply outdated.
- Businesses in London would adjust hiring strategies around language needs:
- 68% of London respondents have adjusted – or would consider adjusting – their hiring strategies to account for language or translation needs.
- Over 95% of Londoners factor language skills into hiring decisions in some form.
- Among business leaders in London, the top skills they’re looking for right now are: AI and automation tools (43%), foreign-language proficiency (34%), and digital marketing (32%).
- Despite reservations about business impact, Londoners are typically better at languages than rest of UK: Londoners themselves are more multilingual than the national average. Over 7 in 10 (72%) say they speak another language – compared to just 67% nationally.
In London, language is no longer just a “nice to have” – it’s a competitive edge. Trends in the UK’s capital are emblematic of wider trends for the country. Around the UK, businesses are paying a high price for their reliance on English as the default language of global business. DeepL’s study reveals that UK business leaders estimate they are losing an average of over £300,000 in revenue annually due to language barriers – a silent cost now being dubbed the “Translation Tax”.
Language barriers undermining UK business growth overseas
Despite all surveyed companies operating globally in some way, 87% of workers say language differences cause challenges, with nearly half (47%) experiencing it at least once a week. Over half (53%) of UK business leaders who have experienced challenges admit that their company has not maximised international growth potential because of language barriers, and 57% say that these challenges are directly affecting negotiations and commercial outcomes.
UK business leaders surveyed the most common challenges created by a lack of language proficiency are customer support (34%), IT related issues (33%) and training (26%). In fact, 65% of business leaders admit lack of language proficiency makes communication with global customers challenging.
Internal communication: English or nothing
However, language-related challenges are leading not only to external issues, but also internal ones. 54% of workers say that language barriers are creating internal communication challenges between offices and teams in different countries. There’s an increasing feeling that UK companies have double standards, despite operating internationally, as 41% of workers say it is not encouraged to speak other languages internally. So much so that 57% of UK professionals feel ‘embarrassed’ that international colleagues are expected to switch to English.
Language inequality persists, despite a desire for change
53% of business owners surveyed acknowledge that colleagues who don’t speak English fluently are at a disadvantage. Although nearly three-quarters (73%) of business leaders surveyed are given the opportunity to learn new languages, language inequality remains deeply entrenched. Language barriers aren’t just philosophical – they’re having a measurable impact on work. 59% of UK professionals surveyed say their performance has been negatively affected by language difficulties. For workers aged 18-24, that number rises to 65%. Despite this, only four in ten professionals are turning to AI to help navigate these challenges.
AI as a strategic solution
David Parry-Jones, Chief Revenue Officer at DeepL, underscored the urgency of adapting to a multilingual business environment:
“While English remains the dominant language of international business, fluency is limited to just 20% of the global population. This study highlights a crucial reality: relying solely on English for external and internal communications can restrict market expansion and impactful team collaboration for UK companies.”
“The financial impact of this over reliance – what we now recognise as the ‘TranslationTax’ – is too significant to ignore. In response, UK businesses are increasingly embracing AI to overcome these barriers. Our research shows that 72% plan to integrate AI into daily operations, and 60% agree that AI translation tools have had a positive impact on international operations. ”
“As global commerce becomes more interdependent, the UK’s reliance on English is becoming less of a competitive advantage and more of a liability. If British businesses are to unlock their full international potential, they will need to move beyond linguistic convenience and invest in multilingual fluency – both human and artificial.”
