While Chancellor Rachel Reeves’s Budget was met with mixed reactions, it has at least provided certainty for businesses, new data from Barclays shows.
Barclays’ post-Budget Business Prosperity Index research, which surveyed almost 1,100 business leaders, has found that over two-fifths are ready to press on with investment plans they had previously paused.
In the months leading up to the Budget, leaders consistently said they were looking for stability. The Q3 Report from Barclays’ Prosperity Index showed that over half (55%) of leaders said their investment plans were on hold, while just over three in 10 (31%) called for greater policy stability from the Chancellor to unlock private sector investment.
With the Budget now revealed, Barclays’ research shows that 42% of business leaders agree that the Budget has given them a clear and stable direction for future plans, compared to 31% who disagreed.
In addition to that, almost four in 10 (38%) business leaders who delayed investment until the Budget have said they now plan to increase investment. That’s 16% higher than the number who say they are now less likely to increase investment, and 13% higher than the quarter of leaders who said their plans were unchanged.
The clarity leaders were craving has also encouraged businesses to say they are more likely to borrow to invest in growth. 40% of leaders say they are more likely to invest compared to 19% who said they are less likely.
This was more prominent amongst large firms, where 48% said they are more likely, compared to small businesses, where 35% of leaders said they were more likely to invest.
As a result of the Budget, almost four in 10 (37%) now feel more confident in their business’s prospects over the next three years, while confidence is unchanged for 27%.
Asked what their investment priorities are, many business leaders are targeting digital infrastructure upgrades.
Perhaps inspired by the number of high-profile cybersecurity incidents throughout the year, cybersecurity and data protection is the highest priority, with 56% of leaders looking to deliver upgrades in this area.
As well as that, 53% said they want to use investment to take advantage of AI’s growing power, with 52% looking to digital infrastructure.
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