West Midlands Records Second Highest Business Confidence in UK — Lloyds Report

By Anushka Malhotra

1 minute

Growth

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Quick Read: The West Midlands recorded the UK's second-highest business confidence level in January, with rising economic optimism and plans for job growth, according to Lloyds Bank.

Rising Optimism and Workforce Expansion Plans Mark Positive Business Outlook

The West Midlands has emerged as a top contender for business confidence in the UK, recording the second-highest level in January, according to Lloyds Bank’s latest Business Barometer.

Despite a slight dip in confidence regarding individual business prospects — down one point to 60% — companies in the region showed increased optimism in the overall economy, which rose by seven points to 43%. This led to a combined headline confidence reading of 51%, up from 48% in December 2024.

Job Growth on the Horizon

Encouragingly, 64% of West Midlands businesses plan to increase staff levels over the next year, a significant 16-point rise compared to the previous month.

Looking forward to the next six months, companies in the region highlighted key growth areas:

Entering new markets: 41%

Investing in workforce training: 38%

Introducing new products or services: 33%

Support for a Thriving Business Environment

Dave Atkinson, Regional Director for the West Midlands at Lloyds Bank, welcomed the positive outlook:

"It's fantastic to see business confidence in the West Midlands rising and more companies planning to hire – something that won't just benefit them but also their local communities. As businesses look to capitalise on this outlook, we'll continue to be by their side with tailored support."

The optimistic sentiment underscores the West Midlands’ resilience and strategic focus on innovation and workforce development, signalling a promising future for the region's business landscape.

What's new

West Midlands Launches First-of-its-Kind Digital Platform to Attract £19B in Investment

The West Midlands Combined Authority (WMCA) has unveiled Site Selection WM, a cutting-edge digital platform designed to unlock and promote over £19 billion worth of regeneration opportunities across the region.

Claimed to be the first platform of its kind in the UK, Site Selection WM provides investors with real-time data on more than 64 development and occupier sites. The tool showcases key information such as planning status, land use, industry focus, and investment type—empowering investors with insights to make faster, better-informed decisions.

Beyond land availability, the platform also integrates localised market intelligence including demographics, nearby amenities, innovation hubs, and transport connectivity. It highlights major zones like the West Midlands Investment Zone, further strengthening the region’s investment proposition.

A Collaborative Effort for Economic Growth

The platform was commissioned by the West Midlands Growth Company in collaboration with WMCA and several local authorities, including Birmingham, Coventry, Wolverhampton, Dudley, Sandwell, Solihull, and Walsall councils.

Richard Parker, Mayor of the West Midlands, called the platform a “step change” in how the region attracts global investment:

“Showcasing over 1,000 acres of regeneration opportunities, Site Selection WM reflects the ambition of the West Midlands. It offers a more transparent, accessible and innovative way for investors to engage with our growth agenda.”

He added that the platform supports a broader mission to bring forward the right infrastructure, including town centre renewal and affordable housing-led developments, to foster inclusive, long-term growth.