West Midlands businesses back devolution to unlock growth, Barclays finds
Almost two-thirds of West Midlands businesses believe greater regional decision-making and devolution will improve economic opportunities in the region, according to Barclays’ Q2 Business Prosperity Index.
The findings, drawn from anonymised client data covering more than 900,000 UK businesses, suggest local firms see greater control over investment, infrastructure, skills and growth priorities as key to unlocking the region’s potential, particularly given its strength in advanced manufacturing, automotive innovation, professional and financial services, and technology and life sciences.
West Midlands businesses traded steadily through the second quarter, with money flowing in and out of firms falling slightly less than the UK average, pointing to relative resilience despite challenging conditions.
The firm said smaller businesses in the region showed particularly encouraging signs, with Business Banking customers seeing incoming payments up 0.5% and outgoing payments up 0.3%, alongside a 1.2% rise in lending, suggesting continued appetite to invest in growth rather than hold back. Economic uncertainty, competitive pressures and rising operating costs remained the region’s biggest concerns over the quarter.
Nationally, the index found 63% of UK businesses confident in the UK economy and 86% optimistic about their own prospects, with 56% planning to increase investment over the next 12 months and 46% considering new finance to support growth.
Paul Faulkner, vice chair of the Midlands at Barclays, said: “It is encouraging to see strong support from West Midlands businesses for devolution. Greater regional decision-making can help ensure local priorities are better reflected in the decisions that shape growth across the region. That confidence reflects the resilience we continue to see across the West Midlands, particularly among smaller businesses that are continuing to operate and invest despite a challenging backdrop.”
To mark the report’s launch, Barclays brought together West Midlands business leaders to discuss the findings, including Raj Kandola, deputy chief executive of the Greater Birmingham Chamber of Commerce, who said: “It was a pleasure to join the inaugural Barclays Prosperity Index event and hear first-hand from a range of high-profile business leaders as they respond to an evolving political and economic backdrop.
“The granular data Barclays gathers from its thousands of customers is absolutely vital in painting a clear and accurate picture of the real time challenges facing firms right now. Nevertheless, there was a palpable sense of optimism in the room which bodes well for the future and opportunities that we need to grasp as a region.”
Barclays has also launched its Business Prosperity Fund, part of a wider £22bn lending commitment for 2026, to support lending and refinancing for eligible projects.
