UK businesses are growing more confident about their local economies. But new data shows one thing hasn’t changed: investment opportunities still aren’t shared equally across the country.
Research from Lloyds Banking Group, published on 22 September, found that 82% of UK businesses expect their regional economy to grow over the next three years. Confidence sits highest in the North East, where 90% expect growth. The South East follows at 89%, and the North West at 88%.
But that confidence doesn’t tell the whole story. The same survey reveals a real divide in how businesses see public investment.
Confidence Is High, But Views on Investment Differ Sharply
In London, 85% of businesses believe their region gets a fair share of public investment. Compare that to Yorkshire and the Humber, where just 37% agree, or Wales, at 38%. Across the UK, only 64% of businesses feel their region gets its fair share. Expectations for economic performance follow a similar pattern.
Around 62% of London businesses expect their region to outperform the wider UK economy over the next year. In the East Midlands and South West, that figure drops to just 28%.
Why does this matter? Confidence alone doesn’t fund expansion. Businesses still need infrastructure, finance, skills, and real investment before growth plans can move forward.
Private Investment Shows the Same Regional Gap
Recent research from NatWest points to a similar divide, this time in how innovative companies turn early-stage support into real commercial growth.
The analysis found thousands of grant-backed UK businesses that are still active and innovative but haven’t secured follow-on equity or reached real commercial scale. And how many businesses fall into this category varies a lot depending on where they’re based.
London and the Southeast remain the UK’s strongest innovation hubs. Together, they’re home to almost 10,000 innovative businesses and have pulled in more than £40.5 billion in follow-on investment for grant-backed firms, an environment where R&D tax credits often play a role in bridging early-stage funding gaps.
This makes one thing clear: rising regional confidence doesn’t mean every business has equal access to capital.
Businesses Are Still Holding Back on Investment
The wider investment picture isn’t especially strong either.
The British Chambers of Commerce expects UK business investment to fall by 0.2% in 2026. Its latest survey found only 17% of firms are increasing investment, the lowest share since the pandemic. Labour costs and taxation remain two of the biggest pressures shaping these decisions.
For SMEs, ignoring these pressures can backfire. Expanding too fast without enough working capital leaves your business exposed if costs rise or expected funding doesn’t show up on time.
What Should UK Businesses Do Now?
Before committing to major regional expansion or capital spending, review your finances first.
Start with the basics: check your cash flow, expected costs, available finance, and the timing of any planned investment. It’s also worth asking whether your growth plans lean too heavily on outside funding.
The Lloyds survey also points to what businesses want to see locally. Supportive planning came out as a key growth driver for 37% of businesses, while 36% pointed to community investment and better transport and logistics. Innovation and research mattered to 35%.
How Lanop Can Help
Regional growth opportunities are real, but the financial conditions behind them aren’t the same everywhere.
Lanop helps UK businesses review cash flow, tax planning, investment costs, and funding structures before making major financial decisions. That gives you a clearer picture of what you can afford, where financial pressure might build up, and how to structure growth more carefully.
Regional confidence is rising, but investment remains uneven. Businesses that plan their finances early will be in a far stronger position to turn that confidence into real, sustainable growth. Contact Lanop today to review your expansion and investment plans.
