Barclays has released an encouraging new report that reveals growing optimism among tens of thousands of UK businesses, despite ongoing economic pressures. The comprehensive banking survey gathered insights from 70,000 enterprises across the country, uncovering significant reasons for confidence in the year ahead.
Survey Reveals Business Resilience
The latest Barclays Business Prosperity Index report demonstrates remarkable resilience within the UK business community. Despite facing considerable affordability pressures, regulatory challenges, and widespread financial caution, the survey found that four in five businesses (83 percent) operating in housebuilding and its supply chains maintain confidence about their outlook for the coming year.
Investment Plans Accelerate
Looking forward, business leaders plan to substantially increase their total investment by approximately 38 percent over the next twelve months. The bank, which maintains branches across Birmingham and nationwide, identified several key focus areas for this investment surge.
Talent development, skills enhancement, and artificial intelligence implementation are all emerging as major investment priorities for forward-thinking businesses. The average intended AI investment stands at £441,281, reflecting the growing demand for AI-assisted design and technological innovation within the construction sector.
Industry Leaders Express Optimism
Jason Constable, Head of Real Estate at Barclays Corporate Banking, commented on the findings: "The level of innovation we're seeing across the industry from larger developers to specialist trades is encouraging, with businesses investing in technology, skills and modern construction methods to boost productivity."
Constable continued: "These innovations, combined with stronger consumer demand for new-builds, present a significant opportunity for housebuilders. While affordability and planning delays still pose challenges, the underlying strength of demand points to clear potential for growth as market conditions stabilise."
Supporting Smaller Businesses
John Ainsworth, Head of Real Estate at Barclays Business Banking, provided additional perspective: "Activity is generally subdued among SME housebuilders, with nearly three in 10 expecting no increase in output in the year ahead."
However, Ainsworth noted: "Yet SMEs are working hard to overcome skills shortages and regulatory alignment, with their resilience coming through strongly as they show confidence in their future success."
He emphasised the importance of continued support: "If the industry is to hit the Government's target and build the much-needed homes of the future, it's vital we continue to support the scaleup of smaller regional players. At Barclays we are committed to providing the external finance needed to scale via our Business Prosperity Fund."
Broader Economic Implications
The Barclays report comes at a crucial time for the UK economy, providing valuable insights into business sentiment during the ongoing Cost of Living crisis. The survey's findings suggest that despite significant challenges, many businesses are finding ways to adapt and plan for growth.
The substantial planned investment in technology and skills development indicates a strategic shift toward future-proofing operations, while the confidence expressed by housebuilding and construction businesses points to potential growth in a sector critical to addressing the nation's housing needs.
