65% of businesses confident in overcoming costs associated with Budget changes, exclusive data reveals
Atradius, one of the UK’s largest credit insurers, has unveiled exclusive survey findings highlighting a positive outlook for UK businesses in 2025. Despite the pressures from rising costs due to last year’s Budget changes, 65% of UK businesses are confident they can overcome these challenges and continue to grow.
The survey data reveals a strong sense of resilience among businesses, particularly in the Tech and IT sectors, followed closely by Engineering, Construction, and Manufacturing. These industries are poised to invest in equipment and technology, a key driver for growth in the year ahead, even amid the ongoing cost-of-living crisis.
However, businesses are still grappling with significant concerns. The top post-Budget worries include inflation (46%) and rises in National Insurance Contributions (NICs) (37%). This is an area of particular concern for businesses in Edinburgh, with 58% citing NICs as a pressing issue.
Atradius’ research also shows that 38% of businesses plan to make hires and investments in 2025. Medium-sized businesses are leading the charge, with 56% indicating they are more likely to hire compared to just 12% of micro businesses. Despite this optimism, 30% of respondents are not identifying clear areas for growth or innovation, with economic uncertainty, lack of investment capital, and industry-specific challenges cited as barriers.
In response to rising costs, over half of the businesses that cannot absorb the Budget changes (57%) intend to increase prices, while 36% plan to absorb the costs at the expense of profitability.
Concerns around payment defaults also remain significant, with 63% of businesses worried about the impact of late or failed payments, a figure that rises to 74% for medium-sized companies.
James Burgess, Head of Commercial and insolvency expert at Atradius UK, said, “With the financial outlook of the UK remaining turbulent, it’s understandable that businesses feel anxious about the changes that lie in the year ahead. However, it’s important for businesses to remain proactive. By consistently analysing market trends, focusing on customer retention, and investing in R&D to innovate products, businesses can better adapt to changing market conditions.”
He continued, “Strategic hiring is another vital component in equipping businesses to weather the storm. By continuously assessing the financial landscape, businesses can better protect themselves while also developing a skilled workforce. Additionally, the role of trade credit insurance cannot be overstated – it serves as a safety net that not only secures revenue streams but also enables sustainable expansion.”
Throughout 2025, businesses will need to be agile and prepared for a challenging financial environment. Atradius emphasises the importance of risk management tools such as trade credit insurance, which can mitigate potential risks and help companies capitalise on growth opportunities. Businesses should prioritise liquidity, diversify their supply chains, and secure trade credit insurance to maintain resilience and stability in the coming year.
