Businesses expect regional economic growth but see uneven investment across the UK

Lloyds
Published on: 22 September 2026
3 min read

85%

of UK businesses confident in regional economic growth

North East

most confident in UK, with 90% expecting regional economic growth

62%

of London firms believe they will outperform UK economy over next 12 months

  • 82% of UK businesses expect regional economic growth in the next three years, reaching 90%, 89% and 88% in the North East, South East and North West of England.
  • 28% of East Midlands businesses believe they will outperform the UK economy compared to 62% of firms in London.
  • 85% of London businesses believe they receive their fair share of public investment, compared to 37% in Yorkshire and the Humber.
  • Businesses see planning, community investment, transport and innovation as key to regional growth.

More than four in five UK businesses are confident in their regional economic growth in the next three years, with planning and investment in community and transport reported as the key drivers of future regional economic growth, but there is a divide in how businesses perceive public investment is distributed across the UK, according to new research from Lloyds.

Confidence was highest in the North East, where 90% of businesses expect regional economic growth, followed by the South East at 89% and the North West at 88%.
 

Map of the UK showing business confidence that local regions will experience economic growth over the next three years. Overall confidence is 82%. Regional confidence levels are: North East 90%, South East 89%, North West 88%, West Midlands 85%, London 85%, South West 80%, Northern Ireland 79%, East of England 79%, East Midlands 78%, Yorkshire and the Humber 76%, Wales 75%, and Scotland 62%. The map uses a colour scale from dark green (higher confidence) to light grey (lower confidence). The data is based on the August 2026 Business Barometer survey of 1,200 companies conducted on behalf of Lloyds Bank by Ipsos between 3 and 17 August 2026.


When businesses were asked about public investment in their region, 85% of London firms perceive their region receives its fair share. This falls to 37% of businesses surveyed in Yorkshire and the Humber and 38% for businesses in Wales. This compares to 64% of all businesses across the UK who perceive their region receives its fair share.
 

Unlocking the next decade of regional growth

From technology clusters across our cities to world-class services businesses in every part of the country, the foundations for long-term growth already exist. The challenge isn’t a lack of opportunity – it’s how we unlock it.

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UK economic outperformance expectations highest in London, North West and South East

Meanwhile, 62% of businesses in London think it will outperform the UK economy in the next 12 months, the highest proportion surveyed. By comparison, only 28% of businesses in the East Midlands and South West believe their region will outperform the UK economy, followed by 31% in Scotland, 34% in Wales and 37% in the East of England.

Unlocking the next phase of regional growth

Despite these differences, businesses across the UK pointed to a clear set of drivers that could help covert confidence into regional growth:

  • Supportive local planning 37%
  • Investment in communities 36% 
  • Transport and logistics 36% 
  • Universities, innovation and research 35% 
  • Digital infrastructure 32%

Regional variation was also seen by driver, with some regions placing greater significance on one driver than others:

  • Supportive local planning - highest at 48% in East Midlands 
  • Investment in communities – highest at 48% in West Midlands 
  • Transport and logistics – highest at 51% in Northern Ireland 
  • Universities, innovation and research – highest at 44% in Wales 
  • Digital infrastructure – highest at 46% in South East

What do you anticipate as being the main driver of economic growth in your business region over the next three years?

This survey was conducted as part of the August Business Barometer. The research is carried out on behalf of Lloyds Bank by Ipsos. The survey was conducted with 1,200 companies between 3-17 August 2026.

Bar chart showing responses to the question, “What do you anticipate as being the main driver of economic growth in your business region over the next three years?” Based on a survey of 1,200 companies conducted between 3–17 August 2026. Regional results (purple) exceed the UK average (green) across all categories: Northern Ireland identifies transport and logistics as the main driver (51% vs 36% UK average); East Midlands cites supporting local planning (48% vs 37%); West Midlands highlights investment in communities (48% vs 36%); South East prioritises digital infrastructure (46% vs 32%); and Wales identifies universities, innovation and research (44% vs 35%).

Businesses across the UK are telling us they see opportunities to grow. Turning this ambition into action requires public and private investment working together to create the right environment for growth.

Whether its investment in infrastructure, skills, innovation or research, businesses have a clear view of what they need locally to drive growth. Every region and nation has its own unique strengths and, by building on these, businesses will have the confidence to invest, create jobs and unlock their full potential.

Amanda Murphy CEO of Lloyds Business and Commercial Banking

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