UK (Parliament Politics Magazine) – British companies and financial services executives expect growth in the new year, with 70% hoping for higher turnover and 73% projecting greater profitability.
Two polls reveal that the majority of UK businesses expect a good start to 2025, with managers preparing for growth following a difficult economic time.
Lloyds bank research shows that about 70% of Britain’s companies expect a rise in their turnover in the coming year, up from 62% in December 2023, while 73% projecting increased economic success.
As reported by the Guardian, a prominent economist at Lloyds stated, “It is exciting to see that businesses have ambitious plans for next year and are confident of growth. Overall, businesses have responded well to the changing external environment.”
He said despite the tough economic condition, businesses are making strategies to grow should prepare them for success in the new year.
A high street bank’s monthly survey of 1,200 companies, which offers insights into Britain’s economic trends, aligns with research on expectations in the economic sector.
According to KPMG data, 7 out of 10 financial service leaders are optimistic that the government’s initiatives will help grow the sector and become more competitive in the new year.
A quarterly survey of more than 160 senior financial services bosses reveals that 68% believe Chancellor Rachel’s plans to “regulate for growth” and enhance competitiveness will bring abroad investment.
In her Mansion House address, last month, Chancellor Reeves stated that Britain has focused on “regulating for risk, but not for growth,” while proposing plans to update rules for the financial services sector.
Ms Rachel stated, “While it was right that successive governments made regulatory changes after the global financial crisis, to ensure that regulation kept pace with the global economy of the time, it is important that we learn the lessons of the past.”
She added the changes were intended to eliminate risk-taking but have gone too far, and it’s now necessary to address them.
The global and UK president of financial services at KPMG, Karim Haji said, “Financial services is the backbone of the UK economy, so it’s encouraging to see leaders go into the new year with optimism about the government’s growth plans for the sector.”
While these polls suggest UK businesses are more confident, they don’t match the results of other recent business surveys.
According to the Confederation of British Industry’s growth indicator poll from last week, UK companies anticipate a significant drop in business activity, with many bosses planning to cut hiring and output in the first three months of 2025.
The British Retail Consortium (BRC) data published last week highlighted that retailers are expected to experience another challenge in the new year, as customer spending forecasts have declined by six points.
Earlier this month, the Bank of England predicted that Britain’s growth has slowed in the last three months of 2024, as inflation reached 2.6%, marking the highest in eight months.
Meanwhile, Sir Keir Starmer, along with Chancellor Rachel and the business secretary, has written a joint letter to the UK’s biggest regulators to give ideas to support economic growth.
BBC reported that before Christmas, the government contacted watchdogs, like Ofgem and Ofwat, urging them to deliver economic reforms by 15 January.
Moreover, the letter was also forwarded to other main regulators like the Environment Agency, FCA, and other healthcare watchdogs.
This letter highlights Sir Keir’s dedication to getting all government agencies, including regulators, to focus on assisting Labour reach its target of the highest economic growth in the G7.