Over half of Britain’s mid-sized companies are gearing up for significant investments.
A recent survey reveals an optimistic outlook among these businesses.
Investment Plans Unveiled
A recent survey by BDO shows that more than half of Britain’s medium-sized companies plan to invest over £3 million each in the coming five years. This highlights a strong sense of optimism among businesses about future prospects, despite recent economic challenges.
Focus on Domestic Growth
Nearly two-fifths of these companies intend to keep their investments within the UK. This suggests robust domestic growth ambitions, indicating a renewed confidence in the local economy.
Seeking New Capital
Additionally, some companies are exploring bank lending as a means to secure necessary funding.
Optimism Amid Economic Challenges
Richard Austin, a partner at BDO, noted the significance of mid-sized businesses’ intentions to invest: “With a new government in place and inflation hitting the Bank of England’s 2% target, there is reason for optimism.”
Government Support Needed
Updating the apprenticeship levy is one way they believe the government can assist in meeting their hiring needs.
Inflation and Interest Rates
Currently, the base interest rate stands at a 16-year high of 5.25%.
Labour Government’s Role
BDO’s Richard Austin emphasized the role of policymakers in creating an environment conducive to business growth.
Recruitment Challenges
Firms are also focusing on hiring challenges as they plan their future investments.
The planned investments by mid-sized companies signal a positive outlook for the UK’s economic future.
Government support in terms of recruitment and conducive policies will be crucial in realizing this growth.