Biggest UK Businesses Looking To Invest £200bn In Two Years

Research from Deloitte shows that the biggest UK businesses are looking to invest a massive £200bn over the course of the next two years. The company conducted research of 132 senior executives of companies with revenue in excess of £1bn and determined that 80% of the companies intend to invest this year with approximately 70% saying that they will invest at least £250m. Following investment of £90bn in 2014, Deloitte predict that a further £107bn will be invested in 2015. They also noted that the extent of the investments, and when companies intend to invest, varied according to the sector and industry in which the businesses operate.

Business investment is crucial to the UK economy, and for hopes of a continued recovery, the government and the wider economy needs UK businesses to invest more money. While it is important that smaller businesses also invest, the majority of the investment bulk will come from both the largest growth organisations and the companies that have the highest annual turnover. Generally, the biggest businesses are considered to be those with an annual turnover of £1bn or more.

Investment from these organisations means that money is poured into the economy. They will employ the services of other organisations, which will fuel further growth for smaller organisations. They may also employ additional staff, which will improve employment, and they will buy produce which will assist in manufacturing and retail. The greater the investment, the greater the opportunity for economic recovery.

Deloitte surveyed 132 senior executives from some of the country’s largest companies and asked whether they intended to invest, how much, and when they would be investing the money. The results showed that investment would be considerable and it would last for at least the next two years.

Healthcare, telecoms, and chemicals companies are the most likely to invest during 2014, according to the survey results, while consumer businesses and financial services are more likely to invest in 2015. Despite positive signs of recovery, investment did not rise as much as anticipated in 2013, with just £3bn more invested when compared to 2009.

About the Author