Businesses in the East of England are confident about their region’s economic growth as they anticipate a greater contribution from local combined authorities and elected mayors over the next three years, according to new findings from the Lloyds Business Barometer.
Nearly four in five (79%) are confident that the East will see economic growth, with 20% feeling very confident. Of the businesses based in areas with a combined authority or elected mayor, 70% now expect their regional leaders to contribute to this growth over the next three years, up from the 55% who said they’ve done so over the previous three years.
The findings also show that more than a third (37%) believe their region’s economy will outperform the national economy over the next 12 months, the seventh-highest proportion across the UK’s 12 nations and regions.
Firms in the East believe the primary drivers of future economic growth in the region to be investment in communities (51%), supportive local planning regimes (46%) and investment in transport and logistics infrastructure (45%).
Six in ten (62%) feel that the East receives its fair share of public investment, the sixth-highest proportion across the UK’s 12 nations and regions. Meanwhile, 84% of the businesses surveyed say they’ve already witnessed notable growth in their region over the previous three years thanks to investment in digital infrastructure (42%), investment in transport and logistics infrastructure (39%) and a supportive local planning regime (34%).
The Lloyds Business Barometer survey is made up of 1,200 UK firms from across all nations, regions and sectors.
Kirsty Sadler, Regional Director for the East of England at Lloyds, said: “It’s great that so many businesses across the East of England are feeling confident about our growth prospects. With the majority believing the East gets the public investment it needs, it’s encouraging that more firms are now expecting local authorities to contribute to the region’s economic prosperity.
“Unlocking the investment needed for our communities and infrastructure will require close collaboration between businesses and local stakeholders, helping the East realise its exciting growth potential.”
The national picture
More than four in five UK businesses are confident in their regional economic growth in the next three years, with planning and investment in community and transport reported as the key drivers of future regional economic growth, but there is a divide in how businesses perceive public investment is distributed across the UK.
Confidence was highest in the North East, where 90% of businesses expect regional economic growth, followed by the South East at 89% and the North West at 88%.
When businesses were asked about public investment in their region, 85% of London firms perceive their region receives its fair share. This falls to 37% of businesses surveyed in Yorkshire and the Humber and 38% for businesses in Wales. This compares to 64% of all businesses across the UK who perceive their region receives its fair share.
Meanwhile, 62% of businesses in London think it will outperform the UK economy in the next 12 months, the highest proportion surveyed. By comparison, only 28% of businesses in the East Midlands and South West believe their region will outperform the UK economy, followed by 31% in Scotland, 34% in Wales and 37% in the East of England.
Amanda Murphy, CEO for Lloyds Business and Commercial Banking, said: “Businesses across the UK are telling us they see opportunities to grow.
“Turning this ambition into action requires public and private investment working together to create the right environment for growth.
“Whether its investment in infrastructure, skills, innovation or research, businesses have a clear view of what they need locally to drive growth.
“Every region and nation has its own unique strengths and, by building on these, businesses will have the confidence to invest, create jobs and unlock their full potential.”
East of England businesses confident in economic growth
