UK business confidence climbs as fast-payout platforms lead digital innovation
Business confidence across the United Kingdom jumped ten points to 47% since the beginning of 2025. Companies are ending the year in better spirits after months of tough trading conditions.
London posted the joint-highest confidence reading in the UK last month at 63%, a big jump from November’s 46%. Firms in the capital grew more optimistic about their own prospects, with that measure climbing seven points to 64%. But the really big shift was in how they view the wider economy, which shot up 27 points to 62%. The West Midlands matched London’s 63% reading.
The digital economy keeps delivering. Tech firms are doing well, helped by businesses and consumers who keep moving online. This shows up most in industries where being fast counts. Take gaming. An instant payout casino in the UK has become a big draw for people who don’t want to wait days for their money. Speed isn’t a nice-to-have anymore. It’s what separates winners from losers.
The East Midlands came in second at 56%, according to the latest Business Barometer from Lloyds Bank. Here’s something odd, though. Whilst businesses feel more positive about the economy as a whole, up 11 points to 42%, they’re actually slightly less confident about their own trading (down one point to 52%). So companies reckon things are getting better out there, but they’re not quite as sure it’ll help them directly.
Construction had the best month, rocketing up 22 points to 61%. That’s the sector’s strongest performance all year. Manufacturing added five points to reach 49%. Retail crept up to 47%, which makes sense given the Christmas rush. Services dipped one point to 41%.
Nearly half of London businesses plan to hire more staff over the next 12 months, up two points from November. But actually finding people to fill those roles? That’s the hard part. Labour shortages keep coming up as the main thing stopping companies from growing.
London firms know what they want to focus on over the next six months. Training their teams tops the list at 60%. Getting new tech like automation and AI in place comes next at 58%. And 44% are eyeing new markets to break into.
Banks and fintech companies are feeling a bit more upbeat, though they’re keeping one eye on regulatory changes and global wobbles. Credit is still hard to come by, but it’s getting slightly easier.
Small and medium businesses are all over the place. Some have turned a corner. Others are still battling high costs and struggling to recruit.
Pubs, restaurants, and hotels have seen more bookings. Energy bills are still ridiculous, though, and food costs haven’t dropped much either. Any pub owner will tell you margins are razor-thin right now. Tourism is helping. Overseas visitors are coming back, drawn by a weaker pound. City hotels are busier. Country pubs offering rooms are doing alright. But a busy restaurant doesn’t mean a profitable one when your overheads are through the roof.
The uptick in December is a decent way to head into 2025. Productivity and competitiveness are still issues that need sorting. But at least businesses are working out how to cope and spotting chances to grow. Whether they can keep this going depends on what happens here at home and abroad over the coming months.
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