See the big picture
Businesses in the North have shown great grit and determination as they have adapted to the uncertainties of the last few years. As such, many should be well positioned to take advantage of any opportunities that present themselves in the coming year.
Head of Mid Corporate, Northern Region, Barclays Corporate Banking
Navigating change
Through my conversations with clients, it’s clear that most have embraced the reality that uncertainty is likely to be the only certainty in the short to medium term. They’ve shown resilience and perseverance in the face of recent upheavals – from the pandemic and geopolitical conflicts to rising costs, the war for talent, and changes in government and policy – and many have built sound contingency strategies to help them thrive in an unpredictable landscape.
Keeping costs under control is likely to remain a key challenge throughout this year. I’m also hearing from many clients that an overburdened planning system is acting as a barrier to growth: businesses striving to expand and build capacity are often struggling to obtain planning permission. With this potentially resulting in additional costs, for example for adequate warehousing, we’re keeping a close eye on how the new government will tackle the planning issues.
There is a lot of interest in the government’s proposed ten-year Industrial Strategy, Invest 2035. Depending on the measures included, this will hopefully provide some much-needed structure, stability and certainty to support businesses’ strategic planning activities.
Head of Mid Corporate, Northern Region, Barclays Corporate Banking
Having motivated people with up-to-date skills continues to be a key factor in achieving that all-important resilience needed in a business. However, many of the businesses I talk to across the North suggest that the skills gap – and its impact on recruitment and salaries – remains a major headache.
So, I look forward to seeing the details of the government’s new growth and skills levy. By replacing the existing apprenticeship levy, it’s hoped that this will go some way to easing the skills gap. I’m hearing that many of the most successful manufacturers in the North are seeing the benefits of apprentices and working directly with local colleges and universities to encourage more people to join the sector.
Freeing up trade
Many of my clients are hopeful that plans to boost investment, trade, growth and regeneration through the region’s freeports, inherited from the previous government, will present opportunities that they can take advantage of.
I’m hopeful that the Northern freeports will complement the region’s strengths in advanced manufacturing, offshore industries, and logistics; as well as supporting further growth in low carbon and renewable energy. We’re seeing increased inward investment to the freeports, particularly in green technology and renewables, which could help drive further investment, job creation, innovation and growth in their local economies.
While 2025 may have more certainty than previous years, businesses should continue to develop solid contingency plans and invest in the agile workforces needed to deliver them where necessary.
Businesses may want to keep up to speed on the role that data and automation can play in improving processes, driving efficiencies, and supporting growth.
Businesses may want to look to renewable energy options to help meet decarbonisation targets, secure their energy supply, or potentially expand their product range with renewable or low-carbon alternatives.
If you’re looking to unlock growth opportunities to move your business forward, our £22bn Business Prosperity Fund is available through some of our borrowing and refinancing options. See how we could work together to achieve your ambitions and strengthen the UK economy. Subject to normal lending assessment, status and application. Terms and conditions apply.
Keeping fraud front of mind
Fraudsters are as active as ever, impersonating our colleagues and attempting to defraud our clients. To help protect you and your business we have a wealth of resources available. You can view our quarterly fraud webinars and take a look at our other educational resources on our Fraud Protection Hub.
To discuss your business requirements and how Barclays can support you, contact us today.
