Seven in 10 businesses (70%) surveyed this month (Dec 2024) expect their turnover to rise in 2025 - up from 62% in December 2023.

Nearly three-quarters (73%) say they are confident of greater profitability next year, according to the latest Lloyds Business Barometer, a long-running measure of business confidence.

More than a quarter of firms say they will be investing in training (27%) and a similar proportion plan pay rises for their teams (24%).

On the technology front, more than a fifth (23%) plan to enhance their technology through automation or AI. 

Lloyds Bank says more UK businesses are expecting a stronger start to 2025 than they did entering 2024, according to the barometer.

A quarter (25%) of those expecting a rise in turnover believe their revenue will increase by between 6% and 10% over the next 12 months, with a fifth (21%) expecting it to grow by more.

Some 73% of businesses are confident they will be more profitable in 2025 compared to 70% who said the same last year.

Driving revenue and profitability growth is firms’ top priority in 2025 (54%), with nearly two fifths (39%) of UK companies looking to improve productivity. Nearly a third (32%) said they would be focused on upskilling their staff.

The Business Barometer surveys 1,200 businesses monthly and which has been running since 2002.

Hann-Ju Ho, senior economist at Lloyds, said: “It is exciting to see that businesses have ambitious plans for next year and are confident of growth. Overall, businesses have responded well to the changing external environment.

"While the economic outlook has been challenging, the steps firms are taking to grow should put them in a strong position for success in 2025.”