Over Half of UK Businesses Delaying Investment Decisions Until After the Budget
New research from the Barclays Business Prosperity Index reveals that while two in five (43 per cent) UK businesses surveyed are expecting to increase investment once the Autumn Budget measures are announced, over half (55 per cent) are opting to delay investment decisions until the Chancellor’s statement has been made so that any implications can be assessed.
Research among 1,000 UK business decision makers shows that 43 per cent expect to increase investment following the Budget, rising to 58 per cent among large businesses and 53 per cent among medium-sized firms.
Among the 55 per cent that currently have investment plans on hold, the top four decisions being postponed include:
• Facility upgrades or expansions: 37 per cent
• Research or development of new or improved products: 36 per cent
• New equipment, machinery or vehicles: 35 per cent
• Staff training plans: 34 per cent
• 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 per cent). This is especially important for small businesses (51 per cent) and micro businesses (51 per cent). Other priorities include investment incentives (37 per cent), public infrastructure investment (36 per cent), and support for workforce training and upskilling (36 per cent).
In a period of global uncertainty, three quarters of businesses (73 per cent) feel that business tax cuts will increase confidence in business success. Two in three (65 per cent) say that investment incentives would increase confidence, while others reflect that measures to reduce the regulatory burden (63 per cent) and increased funding for regional business development (63 per cent) 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.”