Business Resilience Grows
Lloyds Barometer Reveals UK Firms Confidently Managing Global Economic Shocks and Expecting Growth
Key Points
In the West Midlands, Lloyds regional director Dave Atkinson said the findings “stand out” for their growth focus, noting that nearly half of businesses want to “enter new markets” and are “prioritising new technology and investing in skills through training,” with expectations to “grow headcount over the next year.”
Yorkshire and the Humber firms showed distinctive inventory management: 39% of businesses taking action “have increased their inventory levels,” while 18% of those with appropriate financial support use “interest rate hedging.”
In the South West, businesses reported heavier use of digital tools than some other regions: of firms with the right financial support, 40% use “digital banking tools” and 32% use “trade finance,” alongside 46% using cashflow forecasting.
Scotland posted the highest confidence level in the set: 84% said they are confident they can “withstand economic shocks,” while 60% reported being impacted by global uncertainty and 65% cited rising costs as the main consequence.
Welsh businesses also tied resilience to financial tooling: among firms saying they have the right support, 39% use “cashflow forecasting,” 32% use “working capital facilities or overdrafts,” and 31% use “invoice or supply chain financing.”
A survey of 1,200 UK firms shows that businesses across the country are holding their nerve despite rising costs and supply chain disruption. According to Lloyds Banking Group, 84% of companies say they are confident they can withstand economic shocks, while 59% are actively changing their strategy to cope with global volatility.
The findings, released June 22, come as UK interest rates sit at 3.75% and global shipping routes remain disrupted by Middle East instability. Firms are cutting costs, locking in prices, and stockpiling goods — but most still expect to grow.
Scotland Leads Confidence While Costs Bite Hard
Scotland posted the strongest resilience reading in the survey. Lloyds Banking Group found that 84% of Scottish firms believe they can absorb economic shocks. But the pressure is real: 60% said global uncertainty has already hit them, and 65% named rising costs as the main consequence.
Martyn Kendrick, Scotland Director at Bank of Scotland Commercial Banking, said Scottish firms are "not standing still" and are pushing ahead with innovation despite the headwinds. A separate survey by law firm MFMac told a more cautious story, though: 47% of Scottish decision-makers named a "weak economy" as their top challenge — the highest level in a year, according to Yahoo Finance UK.
Yorkshire Firms Stockpile Goods as Supply Chains Stay Fragile
In Yorkshire and the Humber, 39% of firms taking action have increased their inventory levels, according to Yorkshire Post. That is a sharp move away from the "just-in-time" model that dominated logistics for 30 years. Continued disruption to Red Sea and Suez Canal shipping routes is a key driver of the shift.
The British Chambers of Commerce warned this stockpiling is "contingency planning, not expansion." Deputy Director of Economics David Bharier said firms are simply "stockpiling against disaster" rather than investing in new productivity. Still, 18% of Yorkshire firms with the right financial tools are using interest rate hedging to manage borrowing costs, per Lloyds Banking Group.
West Midlands Bucks the Trend With a Push Into New Markets
The West Midlands stood out for its growth ambition. Regional Director Dave Atkinson said the findings "stand out" for their focus on expansion. Nearly half of firms in the region want to "enter new markets," and 54% expect to grow this year, according to Greater Birmingham Chambers of Commerce.
Atkinson said businesses are "prioritising new technology and investing in skills through training" and expect to "grow headcount over the next year." That contrasts sharply with Wales, where 49% of firms taking action have delayed or cut expansion plans, per BusinessLive.
Digital Tools and Cash Flow Planning Help Firms Stay Solvent
Access to financial tools is separating firms that are coping from those that are struggling. In the South West, 46% of firms with the right support use cashflow forecasting, 40% use digital banking tools, and 32% use trade finance, according to Lloyds Banking Group. In Wales, 39% use cashflow forecasting and 31% use invoice or supply chain financing, per BusinessLive.
Lloyds CEO for Business and Commercial Banking Amanda Murphy said resilience across regions is a sign of stability in a "complex world." Senior economist Hann-Ju Ho added that a "rise in pricing expectations" shows firms are trying to "rebuild their margins in 2026" — suggesting the squeeze is not over yet.
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