The UK government’s Industrial Strategy (IS), announced on 23 June, has been met with positivity from businesses, according to new Barclays Business Prosperity research.
Of 1,000 small, medium and large business leaders, six out of 10 (61%) expect it to have a positive impact on their business.
This optimism is contributing to financial action. Almost half (47%) of respondents are planning to increase investment in their business as a result of the measures, with 12% primed to make ‘significant’ increases.
Intention to invest is highest among large businesses (68%), and those who are most familiar with the strategy (73%). Just 8% say they will decrease investment, while 34% don’t plan any investment changes.
Following the publication of the Industrial Strategy, over half (56%) feel more positive about the prospects for their own businesses, and 45% feel more positive towards the UK’s economic outlook.
When it comes to the positive changes the Industrial Strategy aims to bring about, respondents cite the following five measures as the most likely to be achieved:
- Encouraging private sector investment (64%)
- Increasing government finance to support specific sectors (63%)
- Building provisions to upgrade the UK skills landscape (62%)
- Strengthening economic growth across all regions (62%)
- Reducing energy costs for energy intensive industries (56%)
Of the businesses that plan to invest, new equipment and technology (48%), skills development (46%) and expanding production (39%) are the most significant areas of focus.
Leaders are keen to be kept informed as the Industrial Strategy progresses: 43% would like to see government representatives engaging with them, via the likes of roundtable events, while 40% would value regular updates in the form of emails and quarterly reports.
Barclays research also shows businesses are planning to take action as a response to the government’s Trade Strategy, unveiled on 26 June, with 36% intending to start exporting or to increase export levels.
Of those planning to increase exports, better access to export finance (42%) and new trade agreements (39%) 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% of firms feel more confident about the UK economy, and – critically – 47% plan to increase their investment as a result, which we need to unlock economic growth.”
Business and Trade Secretary Jonathan Reynolds added: “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.
“Not only will this help cement the UK’s position as a global investment destination, but will help put more money in people’s pockets across the country, backing our Plan for Change.”
