See the big picture
We’re excited about the opportunities on the horizon for the business and professional services sector now that it has been identified as one of the key high-growth industries in the new government’s proposed industrial strategy – Barclays are involved in the consultation process to help ensure a good outcome for our clients.
Industry Directors, Business and Professional Services, Barclays Corporate Banking
The new government’s policy initiatives and its stance on regulation could have a big impact on the sector and focus future investment. We’re feeling particularly positive about the sector’s inclusion in the government’s new industrial strategy and I’m sure firms are keeping abreast of updates about this as they seek ways to differentiate themselves in a competitive market.
With many businesses across the UK telling is they have put their growth plans on hold over the past two years or so, we may now see an increase in economic activity, provided the political environment continues to stabilise. Professional Services firms in particular will benefit from work associated with an increase in mergers and acquisitions.
Given the continued need to manage rising costs, firms may want to spend time this year thinking about how they’re going to invest for growth and what strategies they’re going to employ to fund these plans.
It’s crucial that firms are clear about their longer-term growth strategies and remain open and ready to capitalise on any opportunities that may present themselves in the coming year.
Industry Director, Business and Professional Services, Barclays Corporate Banking
Empowering the workforce of tomorrow
Of course, being an industry so heavily reliant on people’s knowledge and skills means most firms will be very attuned to the impact of salary inflation, the difficulties they face in recruiting young talent, and the employers’ NIC increases announced in the Autumn Budget.
I’m hearing lots to suggest that new and evolving pathways into the professions – for example, apprenticeships and direct entry from school – are likely to play an increasingly important role for firms as they seek to invest in the professional skills required for the future.
Industry Director, Business and Professional Services, Barclays Corporate Banking
In addition, more and more of our clients are recognising that technology can potentially be a key differentiator and help their people be more effective in their roles. Of course, their approach to harnessing digital tools and skills needs to deliver a clear and measurable return on investment.
Prioritising secure and sustainable growth
Investment in growth initiatives will need to allow for ongoing funding to manage cyber security risks to protect against the costs and reputational impact of an attack. Our clients will also maintain their focus on their sustainability journeys this year and balancing these with their long-term growth plans.
Property services firms in particular will be acutely aware of the government regulations driving the direction of travel in terms of net zero and their requirements to reduce carbon emissions and energy use in their existing building stock, and I expect to see an even greater focus on retrofitting this year.
Industry Director, Business and Professional Services, Barclays Corporate Banking
Funding for sustainability projects remains key, which is why, for example, we’ve recently announced our commitment to deliver £500m through the National Wealth Fund to support the retrofitting of UK social housing.1
Strategic investment, particularly in people, will be key for firms looking to enhance their capabilities, achieve better client outcomes, and make the most of any new market opportunities that present themselves.
Looking to the longer-term, firms may want to review their strategic objectives and pathways to growth, whether that means maintaining or adapting their current structure, seeking out partnerships with other firms or exploring new investment opportunities.
Along with having the best people with the right skills, firms will be continuing to explore how technology and digital tools can support their teams’ productivity and job satisfaction, and drive efficiencies.
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 across the business and professional services sector, 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.
