Region’s firms set to invest in growth next year

The Australian-owned lender said 95 per cent of Yorkshire SMEs will invest in growing their business in 2014.

The survey also indicates that rather than looking to maintain the status quo or cutting back, keeping pace with demand was driving investment among Yorkshire businesses, with 59 per cent citing this as being influential in their decision to invest in growth.

Confidence is another major influence on the decision to invest with 61 per cent of respondents citing optimism as an important factor in their decision-making. 50 per cent said there are no barriers at all for them to invest.

SME investment in the next year could also be a significant contributor to Yorkshire and UK economic growth, according to the survey’s results.

The Yorkshire Bank research indicates that SMEs plan to invest an average of seven per cent of turnover on growth. Across the UK, based on official figures, this could be worth up to £160bn, or £34,000 per business, to the UK economy.

The top three identified investment areas for businesses in Yorkshire are new equipment and technology, employing new staff, and increased sales and marketing.

Alan Young, Yorkshire Bank’s regional director for Yorkshire, said: “These are encouraging results and echo recent official growth figures.

“They suggest many SMEs in Yorkshire are at the point where they feel more certain about investing in their businesses.

“As the majority of UK companies are small and medium-sized businesses, this has to be good for the economy as a whole.

“It’s important that we recognise and understand that there are still barriers to growth for some businesses.

“Access to funding has changed across the market place, but it is available to well-managed businesses with strong plans for growth.”

The research, by Opinium, polled 818 middle managers and above in UK-wide SME businesses last month.

Yorkshire Bank is hosting more than 200 free events for SMEs as part of its Business Week programme.

Mr Young said: “We are opening our doors to businesses across Yorkshire, and in partnership with local and national experts, offering SMEs the chance to understand what options and support are available to help them overcome the growth barriers they face.”

National Australia Bank said its UK subsidiary reported pre-tax cash earnings of £127m last year, reversing a loss of £183m the previous year. The charge for bad and doubtful debts fell £473m to £158m.