As the national conversation on business growth gains momentum, it is essential to understand the state of play of UK business performance. At Barclays, we support approximately one million small and medium enterprises (SMEs) and a quarter of all UK corporates, granting us valuable insights into the health of UK commerce. To support our customers with their future growth plans, we’ve launched the Barclays Business Prosperity Index – a comprehensive tool that tracks the performance and future growth of UK businesses. The Index provides a holistic measure of UK business performance, leveraging Barclays’ proprietary data, survey research collated by Opinium and economic modelling by the Centre for Economics and Business Research (Cebr) to create a leading indicator for current performance and future growth. Join us as we explore key trends and opportunities for a thriving UK economy.
“The economic environment remains challenging for those on tight margins, but there are signs of cautious optimism emerging. Our data shows many businesses with investment plans on hold are now confident to kick-start growth by seeking the funding they need. The availability of our £22bn Barclays Business Prosperity Fund will help our clients to invest for their future and support economic prosperity for all.”
Matt Hammerstein
Chief Executive of the UK Corporate Bank
The Barclays Business Prosperity Fund
The Barclays Business Prosperity Fund is designed to demonstrate our available funding for UK businesses and help new and existing clients and customers capitalise and better understand the growth opportunities and finance options available. The £22bn Fund is available across Business Banking and UK Corporate Banking, for businesses to apply for lending and refinancing of existing facilities in 2025. It is another way for Barclays to deploy £30bn of RWA investment to support the UK economy. Through our industry verticals, and regional teams, we’re going to use our expertise to help our clients better understand and navigate their financing options. If your business could benefit from additional finance, visit barclays.co.uk/business-banking/borrow/ or barclayscorporate.com/big-picture-banking/.
Business Prosperity Index
Cash inflows in Q3 decreased by -6%, a contrast to the +85% growth seen in the same quarter in 2023. Q3 year-on-year lending value growth, however, increased from -103% in 2023 to +144% in 2024.
Increased focus on investment
Investment and growth are increasingly important themes in the minds of many business leaders and policy makers. UK business investment experienced a mixed trajectory over the past year, reflecting both challenges and opportunities following a period of high inflation. However, our data shows that despite cash flow into business accounts declining, investment intentions are on the rise and picked up slightly this quarter.
“Our new Index is designed to be a bellwether of business sentiment, performance and future growth opportunities. We hope business leaders and policy makers find it a valuable tool to navigate the economic landscape.
"It’s reassuring that businesses remain committed to investing to grow, despite the extra financial pressures faced by many. Barclays stands ready to help unlock access to finance and support business prosperity in the long and short term.”
Hannah Bernard
Head of Business Banking at Barclays UK
Labour market challenges
Our research shows, that firms see skills as a key priority across the UK, with a high proportion of business leaders saying a lack of access to skilled labour is having a negative impact on their ability to grow.
But businesses are looking to counter this through an emphasis on training and workforce development and enticing and attracting skilled candidates, as building the workforce remains a key priority for business leaders.
Financial Resilience Index
Cash balances were down by 10% in Q3 compared to Q2 this year. Meanwhile, Q3 lending value growth increased significantly from -103% in 2023 to +144% in 2024.
Decreased consumer demand and increased discounts
Over the past year, the costs of producing products and services have remained high for businesses, resulting in a softer demand as customers looked to reduce costs.
In response, businesses have introduced strategies, such as making changes to their product offering and updating supply chain processes to retain customers with over half of firms surveyed, committing to invest in the expansion of products and services.
About the report
The Barclays Business Prosperity Index (the “Index”) is designed to provide a holistic measurement of UK business performance and prosperity.
The Index is not intended to be a tracker of GDP, or any other official metric. This report reflects a combination of proprietary data and survey responses, and as such, contains insights that inherently include a degree of subjectivity.
The Index combines proprietary data from the UK Corporate Banking business in Barclays Bank PLC and the Business Banking business in Barclays Bank UK PLC, external survey data collated by Opinium, and economic modelling by the Centre for Economics and Business Research (Cebr).