Deloitte: Financial firms to splash out
The UK's biggest businesses - including a number of financial services providers - are set to offer the British economy a major boost over the coming two years, investing cash into recruitment and infrastructure.
According to Deloitte, these companies are set to invest up to £200 billion in the period up to 2016 as they attempt to compete with their global rivals and respond to the improving economy.
However, the resurgence of business investment will be phased as some companies use cash for other purposes. Some 50 per cent are hoping to return money to shareholders, while 11 per cent hope to add further to their balance sheets before creating any further expenditure.
Deloitte UK chief executive David Sprout said: "Over the last 12 to 18 months the steadily improving economy has led to an increase in corporate risk appetite. However, that has not yet translated into the level of investment policymakers had hoped for."
In 2013, companies in the country invested only £3 billion more than they had done in 2009, despite the fact that the overall economic situation had strengthened considerably.
"A well-balanced recovery requires a significant rise in corporate investment and a shift away from consumer-led growth. This investment is much needed," added Mr Sprout.
Healthcare, telecommunications and chemicals companies appear set to lead large-scale investment for 2014, but moving into 2015 the biggest spend is likely to come from businesses in the financial services sector, along with consumer-focused firms.
Only 26 per cent of listed companies are likely to invest over both years, while non-listed firms are planning to focus their outgoing throughout either 2014 or 2015.
Organic growth looks set to be more popular - 56 per cent are planning to invest in this area, while the remainder are preferring to concentrate on non-organic growth.
MP Danny Alexander, chief secretary for the treasury, echoed Mr Sprout's enthusiasm. The government is hoping to aid the growth of business by cutting red tape and reducing corporation tax, he added.
Signup to receive the latest discipline specific articles
Related articles
Teaser
Investment and AdvisoryContent Type
General
22/11/21
Summary
With COP26 recently taking place in Glasgow, climate change is very much top of mind for individuals and businesses alike. We are all looking for small ways in which we can red
by
Alastair Paterson
Teaser
Professional ServicesContent Type
Market Insight Reports
21/08/18
Summary
View specialist markets salaries within the North West region. TAX Job title Salary range Junior £18,000 - £25,000 Senior £28,000 - £35,000 Assistant Manager £35
by
Becky Hughes
Teaser
Financial ServicesContent Type
General
11/04/16
Summary
The conventional wisdom is that top banks, the largest players in the market, have managed to deal with the ongoing financial crisis relatively well, while their smaller counterparts struggle to keep
by
Cliodhna Lynch
Related jobs
We are sorry we can't find what you're looking for
Why not try one of the following ...