Following the Autumn Budget, Barclays conducted research to assess how business leaders are responding to recent government measures. The survey found that 42 percent of businesses believe the Budget has provided clear and stable direction for their future plans, while 31 percent disagree.
The research, which surveyed 1,092 business leaders after the Budget announcement, indicates that 38 percent of those who had delayed investment decisions now plan to increase their investments. In contrast, 23 percent say they are less likely to invest following the Budget. Businesses are prioritizing spending on cybersecurity and data protection (56 percent), artificial intelligence (53 percent), and digital infrastructure (52 percent).
Nearly four in ten respondents (37 percent) reported increased confidence in their business prospects over the next three years as a result of the Budget. For some businesses, confidence remained unchanged at 27 percent.
Prior to the Autumn Statement, Barclays found that more than half of businesses were postponing growth or investment plans until after the announcement. Now, with greater clarity on policy direction, many report renewed intentions to invest.
Borrowing intentions have also shifted: 40 percent of businesses say they are more likely to borrow for growth since the Budget was announced. This trend is more pronounced among large firms (48 percent) compared with small businesses (35 percent).
However, opinions remain divided about whether the Budget addressed business needs; 54 percent said it somewhat addressed their requirements while 39 percent felt it did not.
The survey highlighted several areas where businesses expect positive impacts from specific measures: funding for employment and skills support (57 percent), permanent lower business rates (51 percent), and fuel duty changes (51 percent). Conversely, increases in National Minimum Wage and electric vehicle tax were cited by around 30 percent as having a negative impact.
In response to new government funding making under-25 apprenticeship training free, almost half of small and medium-sized enterprises are considering hiring more apprentices.
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 over the next three years.”
Barclays has launched its Business Prosperity Fund for both new and existing Business Banking customers as well as UK Corporate Banking clients seeking lending or refinancing for projects across the country. The bank states it has £22 billion available for lending in 2025 among these clients. Over three years, Barclays aims to increase consumer and business lending by approximately £45 billion.
Barclays’ Business Prosperity Index is a measure tracking business performance and growth outlooks using proprietary data alongside economic modelling developed with input from external partners such as Opinium Research and Cebr. The index covers companies ranging from microbusinesses through large enterprises across various sectors throughout the UK.