More London businesses are expecting turnover and profitability growth in 2025 than they did entering 2024, new research from Lloyds’ Business Barometer reveals.
More than eight in ten firms (81%) expect to see their turnover increase in the year ahead, up from 60% polled in December 2023. Three in ten (30%) of these expect to see their revenue rise by between six and 10% over the next 12 months, with more than a quarter (26%) expecting it to grow by even more.
Meanwhile 84% of businesses are confident they will be more profitable in 2025. This compares to 71% who said the same last year.
While general revenue and profitability growth is firms’ top priority at 63%, 41% said they will be looking to improve their productivity and 34% will be aiming to enhance their technology, such as automation or AI. Just under a fifth (19%) want to improve their environmental sustainability.
To support their goals, 31% will be investing in staff training, while nearly a quarter (23%) will be investing in increasing wages for employees. The same proportion (23%) will be investing in new technology, with more than a fifth (21%) also planning specific investments in AI.
The Business Barometer, which surveys 1,200 businesses monthly and which has been running since 2002, provides early signals about UK economic trends both regionally and nationwide.
Kirsty Sadler, regional director for London at Lloyds, said: “These are incredibly encouraging results. London’s businesses are entering 2025 with widespread growth expectations, and clear ambitions – from boosting productivity to enhancing environmental sustainability and technological capabilities. Whatever their goals, we’ll continue to be by their side to help them put their plans into action.”
