Barclays has delivered a clear assessment of business sentiment following the Labour Party's Autumn Budget in November, revealing a significant boost in confidence among UK firms.
Budget Clarity Unlocks Delayed Investment Plans
The bank's latest Business Prosperity Index, which surveyed 1,092 business leaders, found that 42% of businesses agree the Budget has given them a clear and stable direction for their future plans. In contrast, 31% disagreed with this statement.
This newfound clarity is directly translating into action. The research shows that 38% of business leaders who had previously delayed investment decisions until after the Budget now plan to increase their spending. This figure is notably higher than the 23% who stated they are now less likely to invest.
Furthermore, the Budget's impact has encouraged 40% of businesses to say they are more likely to borrow money to fund growth investments. Only 19% said they were less likely. This trend was more pronounced among large corporations, with 48% more inclined to borrow, compared to 35% of small businesses.
Top Investment Priorities: Cybersecurity, AI and Digital Infrastructure
The survey pinpointed the key areas where companies are planning to channel their funds. The most common investment priorities for UK businesses are:
- Cybersecurity and data protection (56%)
- Adoption of Artificial Intelligence (53%)
- Improving digital infrastructure (52%)
Despite the positive shift for many, opinions on the Budget's effectiveness remain divided. While 54% of business leaders felt it somewhat addressed their needs, a significant 39% believed it did not.
Barclays Commits £45 Billion in Support
In response to the growing business confidence, Barclays has reaffirmed its commitment to supporting the UK's economic growth. Matt Hammerstein, CEO of Barclays UK Corporate Bank, commented on the findings.
"With the Budget measures now announced, many businesses have the confidence they need to move forward," said Hammerstein. "We're committed to helping them achieve their goals, supported by our plan to provide around £45 billion in additional consumer and business lending over the next three years."
To facilitate this investment drive, Barclays is offering its Business Prosperity Fund. This fund is available for both new and existing Business Banking customers and UK Corporate Banking clients across the country, allowing them to apply for lending and refinancing for ongoing projects.
