Sunshine on the Horizon: London and South East Businesses Gear Up for 2025
Nearly ninety percent (88%) of private firms in London and the South East are buzzing with confidence that they’ll see growth next year, a fresh tally from KPMG UK’s inaugural Private Enterprise Barometer.
Survey Snapshot
- 1,500 business owners surveyed nationwide, with 250+ from the capital and the South East.
- Industries covered: professional services, finance, tech, manufacturing and retail.
- London & South East: 36 % say a brighter UK economy fuels their optimism.
Future‑Proofing Plans
- 68 % of firms will broaden their offerings within the next five years.
- 56 % aim for overseas expansion over the same period.
- London’s AI investment buzz: 77 % eye the tech frontier (close behind the West Midlands’ 83 %).
South East Outlook
- More than half (58 %) feel rising demand for their products and services.
- Talent gaps remain a headache – only 48 % feel confident hiring the right skill set versus the national average of 55 %.
- London’s workforce confidence is stronger at 59 %.
Funding & Growth
- Funding troubles are rare (just 13 % across both regions).
- Private equity tops the list as the preferred financing path for long‑term diversification (40 % of respondents).
- Bank debt follows at 20 %.
Insights from KPMG
Anna Purchas, London Office Senior Partner at KPMG UK, remarked:
“The past few years have been anything but easy for businesses in London and the South East, yet this confidence signals massive growth ambitions heading into 2025.”
“Adopting AI is key to hitting those targets—boosting efficiency, enhancing customer delight, you name it. It’s great to see firms ready to lean into that tech wave.”
“Meanwhile, talent remains top priority. Balancing innovation with workforce development is the winning formula that will sustain UK economic momentum.”
In short, London and the South East are ready to roll up their sleeves, chase new horizons, and stir the pot of British business with a splash of tech, talent, and tenacity.
National outlook
Britain’s Small‑Biz Dream Team for 2025
Picture this: a crowd of private business owners lifting their mugs, declaring that 92 % of them are ready for growth next year. Most don’t feel too worried, but the few who do point out queasier competition and the ever‑mysterious funding maze as real roadblocks.
Where the Money Grows: Tech, Talent, AI
- Technology is the star of the show – 63 % of firms say it will get their cash.
- Skills & Workforce follows at 49 %, because people matter.
- In the tech arena, nearly three‑quarters of sellers (73 %) plan to add AI to sweeten the customer experience.
Inside the Head of KPMG, Euan West
“2024 felt like a roller‑coaster, but seeing so many firms bounce back gives me a pep‑package for 2025. The optimism here will power these companies when the next year’s storms hit. Tech and talent investments are not just buzzwords – they’re the keys to real growth and a stronger UK economy.”
Ready to stay in the loop? Dive into real‑time updates on your device—just hit “subscribe” whenever you’re ready.
