Confidence among British businesses has rebounded following the recent changes in Government, with 63 per cent now optimistic about the UK economy, up from 57 per cent in the first quarter, according to Barclays’ latest quarterly health check on the nation’s firms.
The bank’s Q2 Business Prosperity Index, which combines survey findings with anonymised client data from more than 900,000 UK businesses, also found that firms’ optimism about their own prosperity over the next 12 months has risen to 86 per cent, up from 83 per cent in the first quarter.
Business leaders appear to have welcomed the shift towards regional decision-making, with 60 per cent agreeing that devolution will improve economic opportunities in their area. Support was strongest in areas with prominent mayoralties: London (68 per cent), the West Midlands (64 per cent) and the North West (63 per cent).
More than a third (34 per cent) expect their business to benefit from the creation of No.10 North, and over half of those (55 per cent) expect it to increase investment and opportunities for their region. That sentiment was most prominent in London (69 per cent) and the Midlands (54 per cent), while 59 per cent of businesses in the North West believe it will enable greater control over regional decision-making. By sector, Technology (81 per cent) and IT and Telecoms (75 per cent) firms are the strongest supporters of devolution, and also expect to see the most benefit from No.10 North.
Abdul Qureshi, head of Barclays Business Banking, said: “Greater regional decision-making gives local leaders the opportunity to align skills, infrastructure, finance and business support more closely with the distinctive strengths of local economies. From technology clusters and advanced manufacturing to professional services, life sciences, clean energy and creative industries, the UK has deep regional specialisms that can be engines of national growth.”
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