More than nine in 10 of the North West’s private businesses are confident in delivering growth in 2025. That’s according to KPMG’s mid-year Private Enterprise Barometer, which the firm is publishing today.
Earlier this year, KPMG unveiled its first-ever Private Enterprise Barometer, an annual survey capturing the perspectives of 1,500 privately owned businesses – including
124 in the North West – from across various industries.
Following a challenging six months
of economic headwinds, KPMG has surveyed businesses again to understand how developments in the first half of 2025 may have influenced their outlook. Earlier this year, 93% of North West private businesses expressed confidence
in their growth prospects for the next 12 months and this sentiment was echoed at the mid-year mark, reflecting unwavering commitment to growth ambitions despite wider economic turbulence.
Technology continued to dominate as a leading investment priority for North West-based businesses, with almost seven in ten (69%) identifying areas such as artificial
intelligence (AI), cyber security and broader digital transformation as key focuses, which is highly consistent with local government’s ambition for the region to remain at the forefront of digital innovation and become a leading digitally inclusive city region.
Diversification is also high on the agenda for private businesses across the North West. A growing number of firms (74%) are looking to introduce new service lines and
expand their client offering, meanwhile, two thirds (66%) are targeting entry into new markets. Both figures show increases from 66% and 59% respectively, at the start of 2025.
When it comes to external challenges, inflation remains the most pressing concern, cited by two in five (42%) respondents. This is followed by potential tax rises in the
Autumn Budget, which a similar number (38%) of business leaders flagged as a key risk.
The appetite for alternative funding options is also gaining momentum, with two in five (40%) regional businesses now open to private equity investment, up from 37% in
H2 2025. This growing interest reflects a broader willingness among firms to explore new sources of capital in support of innovation, growth and long-term resilience.
Chris Stott, Manchester Office Senior Partner at KPMG UK, said:
“It’s hugely encouraging to see confidence among the North West’s private businesses holding strong at the mid-year mark. Despite ongoing economic pressures,
firms across the region – from its industrial heartlands to its tech, creative and professional services hubs – are pressing ahead with ambitious growth strategies, driven by diversification and innovation.
“Many are expanding service lines, entering new markets and backing digital transformation, with technology like AI and cyber security high on the investment agenda.
“With growing interest in private equity and a clear appetite for long-term resilience, the North West is showing it’s not only ready to meet challenges head-on, but also
determined to cement its role as a driving force in the UK’s economic future.”
Nationally, the mid-year check-in saw a rise in confidence, with 93% of respondents confident in their growth prospects for the months ahead. Earlier this year, 92% were
confident of their firm’s growth prospects in the next 12 months.
Business priorities remained the same, with tech, skills and innovation still dominant. However, there was a slight dip in interest when it came to the areas of ESG and
sustainability.
Looking ahead, private businesses highlighted a range of areas they see as key to helping build this planned growth in the upcoming Autumn Budget. These included the faster
adoption of new technology and subsequent investment in research and development, fresh measures to help with business profitability, support to help nurture skills and talent, and the continued focus on a renewed industrial strategy.
Euan West, Head of KPMG Private Enterprise in the UK and EMA, said:
“2025 has been filled with many challenges at home and abroad for firms of all shapes and sizes.
“Private businesses have continued to show resilience and adaptability in the face of these challenges, which is reflected in their steady levels of confidence
about the future.
“The results of this survey show that the UK is seen as a stable environment for business, providing a strong launch pad for future growth, but there are still
challenges, particularly when it comes to ongoing inflation conditions.
“All eyes will now fall on the Autumn Budget to see if the concerns of private businesses are addressed.”
