Barclays introduces a £22bn fund and Business Prosperity Index to boost UK business growth.
- The index, created with Cebr, uses data from over a million business clients.
- Findings show increased business confidence and a 1.4% rise in planned investments.
- Barclays CEO expresses optimism for business growth with new fund availability.
- Skilled labor shortage remains a significant challenge across regions.
Barclays has launched the new Business Prosperity Index, developed in collaboration with the Centre for Economics and Business Research (Cebr). This innovative tool combines insights from data collected from over one million Barclays business clients, focusing on lending, cash flow, and international payments. Additionally, it incorporates survey feedback from 1,000 business leaders to measure overall business sentiment in the UK.
Initial findings from the Q3 report reveal that UK businesses are growing more confident about future prospects. This is reflected in a 1.4% year-on-year increase in planned investments. Following recent budget announcements, nearly half of the businesses have resumed previous investment plans. Moreover, 37% are inclined to seek additional funding for expansion.
Supporting this trend, Barclays has introduced the £22bn Business Prosperity Fund, designed to provide financial support to businesses aiming for growth. This fund is accessible to both existing Business Banking and UK Corporate Banking clients. Matt Hammerstein, CEO of Barclays UK Corporate Banking, noted the readiness of businesses to initiate growth with the aid of this fund, asserting its role in advancing economic prosperity.
The survey highlighted a resilient financial outlook among UK businesses, with a significant focus on staff training and research and development (R&D). Despite pressures from various challenges, 61% of business leaders remain optimistic about the economy’s trajectory. Improvements are also seen in cash flow management, with a noted 17% increase in net cash flow year-over-year. However, the shortage of skilled labor continues to pose a major obstacle, particularly in regions such as Scotland, Yorkshire, and the Humber, and the West Midlands.
Although inflation appears to have stabilized, the sustained high production costs force businesses to adapt by introducing new product offerings and altering pricing strategies, which include practices like shrinkflation. Business leaders, including Hannah Bernard, Head of Barclays Business Banking, emphasize the new index’s value as a strategic tool for navigating economic landscapes and ensuring necessary growth resources.
Barclays’ initiatives represent a substantial commitment to fostering UK business growth amid ongoing economic challenges.
