New research from the Barclays Business Prosperity Index shows that while two in five UK businesses plan to boost investment following the Autumn Budget, over half (55%) are holding off until the Chancellor’s statement to assess its impact.
Research among 1,000 UK business decision makers shows that 43% expect to increase investment following the Budget, rising to 58% among large businesses and 53% among medium-sized firms.
Among the 55% that currently have investment plans on hold, the top four decisions being postponed include:
• Facility upgrades or expansions: 37%
• Research or development of new or improved products: 36%
• New equipment, machinery or vehicles: 35%
• Staff training plans: 34%
• Tax cuts number one Budget priority for UK businesses
Business tax cuts top the list of desired measures businesses would most like to see from the Budget (45%). This is especially important for small businesses and micro businesses. Other priorities include investment incentives (37%), public infrastructure investment (36%), and support for workforce training and up-skilling (36%).
In a period of global uncertainty, three quarters of businesses feel that business tax cuts will increase confidence in business success. Two in three say that investment incentives would increase confidence, while others reflect that measures to reduce the regulatory burden and increased funding for regional business development would also increase confidence if included.
Matt Hammerstein, chief executive of Barclays UK Corporate Bank, said: “Our research shows businesses are eager to invest in facility upgrades, new and improved products and staff training, but they need clarity from the Government to move forward. The Autumn Budget presents a critical opportunity to unlock that investment and drive long-term growth.”