This wide-ranging business survey from Lloyd’s could be just the tonic for Labour. Following a slew of fiscal challenges and stagnant growth forecasts in their first six months of their government, the tide might just be turning for Keir Starmer and his colleagues.
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New business survey indicates faith in Labour plan
Growth figures for the UK were recently revised down to 0.0%. Many critics have lashed out at the ruling party, arguing that their decision to increase employers’ National Insurance contributions were a huge barrier to business development.
Sir Keir has taken a number of not-so-popular decisions in office since winning the General Election in July – caveating his choices with the promise of a strengthened economy further down the line. So he may take this survey as the first sign of progress.
Businesses expecting revenue and profitability to rise in 2025
As per the monthly sentiment index, a poll conducted among 1,200 businesses showed a general trend of optimism heading into 2025. Approximately 70% of those questioned said they were expecting a higher turnover by the end of Q1.
A higher percentage of firms also expect to increase their profitability by the end of the year, rising substantially from the 62% of companies who said the same thing 12 months ago. What’s more, there’s growing bullishness from the City.
Labour bet the house on economic growth
Around 67% of leaders in the financial sector say they support Labour’s new strategy to help bring more foreign capital into the country. All of this will be music to the ears of the Prime Minister, who faces a make-or-break year in office.
Despite flatlining in 2024, the economy is forecast to grow in the months ahead. An increase in government spending on public services, alongside changes to official monetary policy, are forecast to help Labour – and the rest of the UK – get back on track.