Barclays has unveiled a substantial £22bn fund along with a new Business Prosperity Index aimed at bolstering UK business expansion.
- The Business Prosperity Index, created with Cebr, offers a comprehensive view of business sentiment and includes data from over a million clients.
- The index reveals increasing business confidence and a 1.4% year-on-year rise in planned investments for Q3.
- Barclays’ £22bn Business Prosperity Fund provides crucial financial support to both new and existing clients seeking to grow.
- Despite workforce challenges, UK businesses remain optimistic, with significant investments in staff training and R&D.
Barclays has introduced an ambitious initiative to stimulate UK business growth, demonstrating its commitment to economic development. Collaborating with the Centre for Economics and Business Research, Barclays has launched the Business Prosperity Index. This new index integrates data from over one million Barclays business clients, providing a detailed snapshot of current business sentiment across the UK economy.
The initial findings from the third quarter highlight a positive outlook among UK businesses. There is a noted 1.4% increase in planned investments compared to the previous year. Following the recent budget announcements, an encouraging 46% of businesses have restarted previously deferred investment projects, and 37% are more inclined to seek additional financial resources.
To facilitate these investment ambitions, Barclays has launched the £22bn Business Prosperity Fund. This substantial financial resource is designed to support businesses in their expansion efforts, available to both new and existing Business Banking and UK Corporate Banking clients. Matt Hammerstein, CEO of Barclays UK Corporate Banking, has expressed a cautious optimism, emphasizing the readiness of businesses to pursue growth opportunities as they access necessary funding.
Business leaders have demonstrated resilience, with a strong focus on key areas such as staff training, where 44% of leaders aim to improve skills, and research and development, which is a priority for 35% of businesses. Although challenges like workforce shortages persist, affecting 62% of businesses, especially in regions like Scotland, Yorkshire, and the Humber, and the West Midlands, companies are proactively addressing these issues through investments in workforce growth and training.
Amid inflationary pressures and high production costs, businesses are adjusting their strategies to remain competitive. Over half of the firms surveyed are considering expanding their product ranges despite rising costs. Additionally, 65% have implemented pricing strategies such as special offers and size reductions to retain their customer base. Hannah Bernard, Head of Barclays Business Banking, underscores the index’s importance in guiding businesses through the economic landscape and ensuring access to growth resources.
Barclays’ strategic initiatives underline the bank’s role in supporting business growth and economic resilience in the UK.
