The UK Government’s Industrial Strategy (IS) has been met with positivity from businesses according to new Barclays Business Prosperity research of 1,000 small, medium and large, business leaders, with six out of 10 (61 per cent) expecting it to have a positive impact on their business.
This optimism is contributing to financial action, the bank said. Almost half (47 per cent) of respondents are planning to increase investment in their business as a result of the measures, with 12 per cent primed to make ‘significant’ increases.
Intention to invest is highest among large businesses (68 per cent), and those who are most familiar with the strategy (73 per cent). Just eight per cent say they will decrease investment, while 34 per cent don’t plan any investment changes.
Following the publication of the Industrial Strategy, over half (56 per cent) feel more positive about the prospects for their own businesses, and 45 per cent feel more positive towards the UK’s economic outlook.
| Businesses planning investment as a result of the Industrial Strategy | |
| Size of businesses | Percentage of businesses planning to invest |
| Large businesses | 68% |
| Medium businesses | 57% |
| Small businesses | 33% |
| Micro businesses | 7% |
When it comes to the positive changes the Industrial Strategy aims to bring about, respondents cite the following measures as the most likely to be achieved:
- Encouraging private sector investment: 64 per cent
- Increasing government finance to support specific sectors: 63 per cent
- Building provisions to upgrade the UK skills landscape: 62 per cent
- Strengthening economic growth across all regions: 62 per cent
- Reducing energy costs for energy intensive industries: 56 per cent
Of the businesses who plan to invest, new equipment and technology (48 per cent), skills development (46 per cent) and expanding production (39 per cent) are the most significant areas of focus.
Leaders are keen to be kept informed as the Industrial Strategy progresses: 43 per cent would like to see Government representatives engaging with them, via the likes of roundtable events, while 40 per cent would value regular updates in the form of emails and quarterly reports.
Barclays research also shows businesses are also planning to take action as a response to the Government’s Trade Strategy, with 36 per cent intending to start exporting or to increase export levels. Of those planning to increase exports, better access to export finance (42 per cent) and new trade agreements (39 per cent) are key drivers for optimism.
Matt Hammerstein, UK Corporate Bank CEO at Barclays, said:
“For businesses to have the confidence to invest, they need a clear framework. The Government’s Industrial Strategy is an important part of that because it provides the long-term certainty needed to spark tangible investment plans.
“Our data shows that, as a result of the strategy, 45 per cent of firms feel more confident about the UK economy, and – critically – 47 per cent plan to increase their investment as a result, which we need to unlock economic growth.”
Business and Trade Secretary Jonathan Reynolds said:
“Economic growth is this government’s central mission, so I’m delighted that Barclays’ findings show our Modern Industrial Strategy is providing the stability and confidence businesses need to invest.”
