The recent success of the UK vaccine roll-out and roadmap announcement has sent business confidence to its highest level since the start of the pandemic. The Lloyds Bank Business Barometer has risen by 9 points to 2% this month, with optimism among businesses about the year ahead driving this rise in confidence as they plan to reopen in the upcoming months.
Since the onset of the pandemic, the vaccine roll-out success has been the first real news announcement that has viable potential to support society back to “normal” and this is in no small part down to vital biotech innovation that has been able to move forward at record speed when it was crucially needed. For the businesses across the country that have been forced to close and cease trading, they can now look forward to the easing of restrictions and pent-up demand that will act as a springboard to recovery later this year.
Private investment is a vital catalyst for wider economic growth - with the UK's high net worth community providing essential early indicators for the direction of wealth at a time where the distribution of capital is key. With a 12% increase in new businesses starting up during 2020 compared to 2019, 2021 is set to create some exciting investment opportunities for investors throughout the country and some that are sure to boost the wider British economy, with 44% of investors now looking to back UK-based companies rather than global firms.
Luke Davis, CEO of IW Capital:
“The vaccine's success so far is a welcomed sight for investors and businesses alike, and now with business confidence at a high and with investors looking to back British businesses, we are sure to see the resurgence of the sectors that have been hardest hit - such as hospitality - with pent-up demand from lockdown playing a key role in boosting the economy later this year.
“The year of doom and gloom is finally coming to an end and a line in the sand has been drawn as we move past Covid and successfully navigate Brexit. Now we will likely see investor confidence skyrocket as the private sectors looks to get behind these businesses to support recovery and enable future growth.
“People want to get out and spend, businesses want to grow and investors want to help them do that, it's a perfect storm for rapid growth. Pubs will bounce back along with restaurants and other hospitality, no one will want to stay at home after the year we've had and I really believe that. Working with local residents on redeveloping the pub and hospitality venue Rockwater Hove has shown me how much people want, more than ever, a place to come together as a community. We are not out of the woods yet, but the sun will almost certainly be shining when we are."