Barclays has proactively launched a substantial fund and a new index to support UK businesses.
- A £22 billion Business Prosperity Fund aims to assist finance access for business growth.
- The new index, developed with Cebr, evaluates business sentiment through wide-ranging data analysis.
- Initial findings suggest increased business confidence and investment amid economic pressure.
- Efforts focus on overcoming skilled labour shortages and maintaining competitive strategies.
Barclays has introduced a £22 billion fund and a new Business Prosperity Index with the aim to bolster business growth within the UK. This initiative was developed in collaboration with the Centre for Economics and Business Research (Cebr) and integrates data from over one million Barclays business clients, including lending, cash flow, and international payments, along with surveys from 1,000 business leaders. The purpose is to provide a comprehensive view of business sentiment across the UK, highlighting increasing confidence among businesses despite ongoing economic uncertainties.
The inaugural findings from Q3 2024 indicate a rise in business confidence, with a notable increase in planned investments. Year-on-year, there has been a 1.4% rise in planned investment for businesses, and 46% of companies have resumed projects that were previously on hold following the UK Budget. Furthermore, 37% of these businesses are now more inclined to pursue additional funding opportunities, underscoring a cautious yet optimistic outlook on growth. Barclays’ Business Prosperity Fund is strategically positioned to facilitate access to finance for business expansions among both new and existing clients in the Business Banking and UK Corporate Banking sectors. Matt Hammerstein, CEO of Barclays UK Corporate Banking, expressed positivity, stating that businesses are ready to initiate growth with the aid of this significant fund.
The survey further highlights the resilience of UK businesses and their readiness to invest, particularly in workforce training and research and development, reflecting priorities of 44% and 35% of businesses, respectively. It is notable that 61% of business leaders maintain confidence in the positive trajectory of the UK economy, an outlook supported by improved cash flow data showing a 17% year-on-year increase in net flows across Barclays’ business accounts. Nevertheless, the problem of finding skilled labour persists, with 62% of businesses reporting shortages, specifically in regions such as Scotland and the West Midlands. Many firms are focusing on expanding their workforce and enhancing training to close these skills gaps.
Despite the challenges of high production costs and the lasting impacts of inflation, many businesses are adapting by expanding their product lines and adjusting prices. More than half of the surveyed companies are looking to broaden their product offerings, while 65% have made pricing adjustments, introduced special offers, or reduced product sizes to maintain competitiveness in the market. Hannah Bernard, Head of Barclays Business Banking, emphasised the importance of the Business Prosperity Index, stating that it serves as an essential indicator of business sentiment and a guide for navigating the economic landscape.
The introduction of Barclays’ fund and index provides crucial support and insight for UK businesses aiming to grow amid ongoing economic challenges.
