Surveys from Lloyds and KPMG indicate that 70 percent of firms anticipate revenue growth in the first quarter of 2025, marking a rise on sentiment levels from the same period a year ago. Lloyds polled 1,200 companies and found nearly three quarters projected higher profits over the coming 12 months. One in five respondents forecasts revenues climbing by more than 10 percent, while a quarter expects turnover to increase by between 6 and 10 percent.
Financial services is the backbone of the UK economy, said Karim Haji, global and UK head of financial services at KPMG, noting that half of the surveyed firms intend to recruit more staff in 2025. Nevertheless, challenges remain. A quarter of respondents cited higher NI costs as a potential drag on hiring, while a third warned that finding skilled candidates could still hinder expansion.
Even so, many economists predict the UK will avoid recession thanks to anticipated interest rate cuts next year and a government spending boost in healthcare and local government. According to traders, four cuts to the Bank of England's base rate could reduce it to 3.75 percent, easing borrowing costs for businesses.
Collection
[
|
...
]