Businesses press go on investment plans following Autumn Budget
Following the Autumn Budget, Barclays conducted research to capture sentiment amongst business leaders, revealing that:
- 42 % of businesses agree that the Budget has given them a clear and stable direction for future plans, compared to 31 % that disagree
- Four in 10 (38 %) business leaders who delayed investment until the Budget now plan to increase investment, compared to a fifth (23 %) who say they are now less likely
- The areas businesses are prioritising for investment are cybersecurity and data protection (56 %), AI (53 %) and digital infrastructure (52 %)
Barclays’ post-Budget Business Prosperity Index research of 1,092 business leaders shows four in 10 (38 %) say the Budget has made them more likely to proceed with growth or investment plans that they had been delaying, compared to 23 % who say they are now less likely.
Businesses resume growth and investment plans post-Budget
As a result of the Budget, almost four in 10 (37 %) now feel more confident in their business’ prospects over the next three years, while confidence is unchanged for 27 %
In a pre-Budget survey, Barclays research showed 55 % said they were delaying growth or investment plans until after the Autumn Statement. This latest post-Budget research shows almost four in 10 (38 %) say they plan to increase investment now that they have certainty on the path ahead. This compares to 25 % who said their plans were unchanged and 23 % who are less likely to invest
Clarity has also encouraged 40 % of businesses to say they are more likely to borrow to invest for growth, compared to 19 % that said they are less likely. This was more prominent amongst large firms (48 % are more likely) compared to small businesses (35 % are more likely)
Businesses remain divided on whether the Budget addressed their needs, with 54 % saying it somewhat addressed their needs and 39 % saying it did not
The most common areas businesses are investing in are: cybersecurity and data protection (56 %), adoption of AI (53 %) and improving digital infrastructure (52 %)
Budget measures that will positively impact businesses included funding for employment and skills support (57 %), permanent lower business rates (51 %) and fuel duty (51 %), while increasing National Minimum Wage (30 %) and electric vehicle tax (30 %) could have a negative impact
Almost half (47 %) of SMEs are now considering hiring more apprentices. This follows the chancellor’s announcement that funding will be provided to make training for under-25 apprenticeships completely free
Matt Hammerstein, CEO of Barclays UK Corporate Bank said: “With the Budget measures now announced, many businesses have the confidence they need to move forward. We’re committed to helping them achieve their goals, supported by our plan to provide around £45 billion in additional consumer and business lending