Barclays launches £22bn fund and new business prosperity index to support UK business growth
Barclays has launched the Business Prosperity Index, a new quarterly report that provides a detailed overview of UK business performance and growth opportunities.
Created with the Center for Economics and Business Research (Cebr), the index combines data from more than one million Barclays business clients—including borrowing, cash flow, and international payments data—and research data from 1,000 business leaders, providing a comprehensive gauge of business. feeling.
Preliminary results for Q3 reveal that UK businesses are increasingly confident of growth, with planned investment in Q3 up 1.4% year-on-year. After the budget, almost half (46%) of businesses restarted investment plans that had been temporarily suspended, and 37% are on the lookout for additional funding. To support this ambition, Barclays has launched the Business Prosperity Fund, a £22bn fund designed to help UK businesses find capital to expand, available to both new and existing Business Banking and UK Corporate Banking customers.
Matt Hammerstein, CEO of Barclays UK Corporate Banking, expressed great confidence: “Our data shows that many businesses are ready to start growing by looking for the funding they need. The availability of our £22bn Prosperity fund will support business investment and help drive economic prosperity.”
Investment Desire and Challenges
The Q3 survey highlights financial stability and a strong appetite for investment, with a strong focus on workforce training (44%) and R&D (35%). Despite ongoing pressures, 61% of business leaders expressed confidence in the direction of the UK economy. Improved cash flow across all Barclays business accounts reflects this strength, with net cash flow increasing by 17% year-on-year as businesses manage their outflows more effectively.
However, labor shortages remain a major challenge, with 62% of businesses citing a shortage of skilled workers. The issue is most talked about in Scotland (92%), Yorkshire and the Humber (90%), and the West Midlands (88%). Almost half of the firms surveyed intend to invest in the development of a large number of people, and many prioritize training to combat the skills gap.
Post-Depression and Inflationary Price Pressures
Although inflation has risen sharply, production costs continue, leading businesses to adapt strategies to retain customers amid rising costs. More than half (52%) of firms plan to increase product offerings, despite rising costs, and 65% have introduced price adjustments, specials, or reduced sizes (inflation) to remain competitive.
Hannah Bernard, Head of Barclays Business Banking, noted the importance of the new index as a tool for business leaders and policy makers: “The Business Prosperity Index is designed to be a business ally, helping businesses navigate the economic environment and ensure access to the resources needed for growth.”
