Barclays has introduced the Business Prosperity Index, a new quarterly analysis aimed at assessing business performance and identifying growth opportunities in the UK. The index combines data from lending, cash flow, and international payments of approximately one million UK businesses with an external survey of 1,000 business leaders. This data is modeled by the Centre for Economics and Business Research to provide insights into current performance and future growth.
The inaugural findings reveal that businesses plan to increase investment by 1.4% during the third quarter compared to the same period in 2023. Following the recent Budget announcement, 46% of firms reported that they had investment plans on hold but now intend to proceed, with 37% more likely to seek additional funding for investment.
To support this growth, Barclays has launched the £22 billion Business Prosperity Fund for refinancing existing facilities and new lending. This fund is available to both new and existing Business Banking customers as well as UK Corporate Banking clients.
"The economic environment remains challenging for those on tight margins, but there are signs of cautious optimism emerging," said Matt Hammerstein, Chief Executive of Barclays UK Corporate Banking. "Our data shows many businesses with investment plans on hold are now confident to kick-start growth by seeking the funding they need."
The survey also highlighted ongoing challenges such as a lack of skilled labor impacting growth prospects. Sixty-two percent of business leaders cited skilled labor shortages as an issue, with regions like Scotland and Yorkshire facing significant challenges.
Hannah Bernard, Head of Barclays Business Banking, commented: "Our new Index is designed to be a bellwether of business sentiment, performance and future growth opportunities. We hope business leaders and policymakers find it a valuable tool to navigate the economic landscape."