Following the Autumn Budget, Barclays conducted research to capture sentiment amongst business leaders, revealing that 42 per cent of businesses agree that the Budget has given them a clear and stable direction for future plans, compared to 31 per cent that disagree.
Four in 10 (38 per cent) business leaders who delayed investment until the Budget now plan to increase investment, compared to a fifth (23 per cent) who say they are now less likely. The areas businesses are prioritising for investment are cybersecurity and data protection (56 per cent), AI (53 per cent) and digital infrastructure (52 per cent)
Barclays’ post-Budget Business Prosperity Index research1 of 1,092 business leaders shows four in 10 (38 per cent) say the Budget has made them more likely to proceed with growth or investment plans that they had been delaying, compared to 23 per cent 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 per cent) now feel more confident in their business’ prospects over the next three years, while confidence is unchanged for 27 per cent.
In a pre-Budget survey, Barclays research showed 55 per cent said they were delaying growth or investment plans until after the Autumn Statement. This latest post-Budget research shows almost four in 10 (38 per cent) say they plan to increase investment now that they have certainty on the path ahead. This compares to 25 per cent who said their plans were unchanged and 23 per cent who are less likely to invest.
Clarity has also encouraged 40 per cent of businesses to say they are more likely to borrow to invest for growth, compared to 19 per cent that said they are less likely. This was more prominent amongst large firms (48 per cent are more likely) compared to small businesses (35 per cent are more likely).
Businesses remain divided though, on whether the Budget addressed their needs, with 54 per cent saying it somewhat addressed their needs and 39 per cent saying it did not.
Matt Hammerstein, CEO of Barclays UK Corporate Bank comments: “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 over the next three years.”