• Swindon & Wiltshire Economy
• Tuesday September 22 2026

South West businesses among the most optimistic about their region’s future growth – Lloyds

South West businesses are confident about their region’s economic growth prospects, but just 28 per cent believe their region’s growth will outperform the UK economy in the next year, according to new findings from the Lloyds Business Barometer.

Eight per cent of South West businesses are confident their region will see economic growth in the next three years, with a third feeling very confident.

This sits between 79 per cent in the East of England and 85 per cent in London and the West Midlands.

However, just 28 per cent believe their region’s growth will outperform the national economy over the next 12 months, the joint lowest reading in the UK alongside the East Midlands.

Among South West firms confident about growth in the economy, the main drivers anticipated are investment in regional universities, business incubators or research & development (R&D) activity (45 per cent), investment in transport and logistics infrastructure (44 per cent) and a local planning regime supportive of business development and growth (37 per cent).

Around half (49 per cent) of firms surveyed feel that the South West receives its fair share of public investment, comfortably above the lowest readings in Yorkshire and Wales (37 per cent and 38 per cent), but still significantly below other southern regions like the South East and London (81 per cent and 85 per cent).

Meanwhile, 37 per cent say they’ve already witnessed notable growth in the South West over the previous three years.

When asked to list what had driven this recent growth, 43 per cent pointed to investment in regional universities, business incubators and R&D, 34 per cent to a planning regime supportive of business development and growth and 30% to investment in transport and logistics infrastructure.

However, 16 per cent of businesses say they have seen a decline in the South West economy over the past three years, compared with 13 per cent nationally.

The Lloyds Business Barometer survey is made up of 1,200 UK firms from across all regions and sectors.

Amanda Dorel, regional director for the South West at Lloyds, said: “There’s a clear sense of optimism among South West businesses about the region’s growth prospects, even if firms are more cautious about whether that growth will outpace the wider UK economy over the coming year.

“What’s particularly encouraging is that businesses have a clear view of where future growth can come from. Investment in universities, innovation and R&D ranks highly, alongside better transport and logistics infrastructure, showing where firms believe investment can make the greatest difference.

“With four-fifths of businesses confident about the next three years, there’s a strong base to build from. The priority now is making sure that confidence is supported by the investment and conditions businesses need to turn it into sustained growth.”