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UK business’ expectations look brighter for 2025


30 December 2024

  • Seven in ten (70%) UK businesses expect to see their turnover increase over the next year, up from 62% in December 2023.
  • Nearly three-quarters (73%) are confident of greater profitability.
  • More than a quarter will be investing in training (27%), while a similar proportion plan pay rises for their teams (24%).
  • Over a fifth (23%) will enhance their technology through automation or AI.

 

More UK businesses are expecting a stronger start to 2025 than they did entering 2024, new research from Lloyds’ Business Barometer reveals.

Seven in ten firms (70%) expect to see their turnover increase in the year ahead, up from 62% in December 2023. A quarter (25%) of these expect to see their revenue rise by between six and 10% over the next 12 months, with a fifth (21%) expecting it to grow by even more. 

Meanwhile, 73% of businesses are confident they will be more profitable in 2025. This compares to 70% who said the same last year.

Businesses focus on productivity and skills, and plan investment in training and wages

Driving revenue and profitability growth is firms’ top priority in 2025 (54%), with nearly two fifths (39%) of UK companies looking to improve productivity and nearly a third (32%) said they would be focused on upskilling their staff. 

More than a fifth (23%) will be aiming to enhance their technology – such as automation or AI – while 21% want to attract new employees. 

To support their goals, more than a quarter (27%) will be investing in training for their team, while a similar proportion (24%) plan to invest in higher wages for staff. 

The Business Barometer, which surveys 1,200 businesses monthly and which has been running since 2002, provides early signals about UK economic trends both regionally and nationwide. 

Hann-Ju Ho, Senior Economist. Lloyds Commercial Banking, said: “It is exciting to see that businesses have ambitious plans for next year and are confident of growth. Overall, businesses have responded well to the changing external environment. While the economic outlook has been challenging, the steps firms are taking to grow should put them in a strong position for success in 2025.”  

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