Businesses expect investment levels to grow over the next 12 months, but remain concerned about the economy

West Country firms are among the “most resilient” in the UK but lack confidence in the country’s economy, according to new research.

The latest Barclays Prosperity Index reported a net confidence level of 36 per cent for the region’s companies – more than 20 base points below the UK average.

But, according to the survey, South West businesses showed greater resilience in international trade activity than the rest of Britain. SME clients within Barclays Business Bank saw inbound (-0.8 per cent) and outbound (-1 per cent) international payments fall at a slower rate than the UK average.

More of the region’s companies also appear to be accessing external finance, with loan volumes rising 0.5 per cent and overdraft volumes growing 3.3 per cent.

The research suggests some of the demand for longer-term borrowing may be to support future investment plans. South West businesses expect investment levels to grow by eight per cent over the next 12 months – the strongest growth of all regions – and four percentage points higher than the UK average.

The top areas firms in the region are looking to invest in are researching and/or developing new or improved products, or services (33per cent) and new or improved digital products or subscriptions (31 per cent).

But Barclays said the stronger-than-average growth in overdraft usage could indicate that part of the increase in borrowing reflected short-term liquidity management.

James Jordan, head of region for the South West at Barclays, said: “Despite continued geo-political and associated economic uncertainty, businesses across the South West are demonstrating strong resilience and adaptability.

“Our data suggests firms are taking a disciplined approach to cash management while continuing to invest selectively in the areas that will support long-term productivity and growth.”

Nationally, geopolitical tensions have hit confidence and investment across the UK, with one in five firms (20 per cent) pausing spending plans in light of the uncertain landscape.

Meanwhile 68 per cent expect to increase cybersecurity investment over the next 12 months, but almost half (46 per cent) believe the adoption of new technologies is increasing their exposure to cybersecurity risks.

Six in 10 firms now proactively use agentic AI, with cloud, cyber and AI together accounting for 44 per cent of planned technology budgets over the next year.

Businesses of all sizes are split on their pricing strategy in response to rising costs, with 37 per cent passing them on to customers and 32 per cent absorbing the impact within margins.

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All 15 caravans on the grounds are to be let out to nuclear power plant workers until 2031

A Somerset wedding venue has been granted planning permission to house extra workers from Hinkley Point C on its premises.

Greenway Farm, on Skimmerton Lane on the western outskirts of Bridgwater, can host up to 60 guests for civil ceremonies in its wedding barn, and also features a restaurant area.

Owners Martin and Susan Felstead obtained planning permission in June 2023 to position 10 caravans on the site for those working at the nuclear power station, in addition to five already let out to members of the Caravan and Motorhome Club.

Somerset Council has now given the green light for all 15 caravans to be rented out to Hinkley Point staff until 2031 – although this timeframe could be extended should construction experience any further setbacks.

The caravans are positioned in the western section of the venue’s grounds, well shielded from both Skimmerton Lane and the nearby Shell petrol station, which houses a Budgens store and Greggs outlet.

Since the initial caravans were installed, a private waste treatment facility has been established and additional trees planted to further separate the campsite from the rest of the wedding venue.

A spokesperson for Clive Miller Planning (representing the Felsteads) said: “The site is well positioned for Hinkley Point C workers, being within walking distance of the bus service which runs along the A39 Quantock Road to the South West of the site.

“Occupancy of the 10 pitches on the site currently allocated on the site has been consistently high. These pitches are currently full and there is further strong demand for more pitches for workers.

“At the moment, the owners of Greenway Farm are having to turn new Hinkley Point C workers away when they enquire about such a provision.

“These pitches are highly appealing to Hinkley Point staff who have their own caravans or motor-homes, are working away from home and wish to keep”

“This also reduces the impact on the local affordable housing provision by providing an alternative choice to the local private rental sector.

“Despite the presence of the BP service station, the Greenway Farm site is relatively quiet, rural and provides the ability for workers to separate themselves from their colleagues when not at work.”

The proposals were granted approval by the council’s planning officers using their delegated powers, bypassing a public ruling by its planning committee north, which oversees major applications within the former Sedgemoor area.

Greenway Farm sits within walking distance of the Centenary Heights development to the north of Quantock Road, where Cavanna Homes South West and Martin Grant Homes are jointly delivering 675 new homes, a primary school and community hub.

The council is expected to reach a verdict imminently on proposals for a further 275 homes at the western edge of the site, just yards from the boundary with Greenway Farm.

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