Business planning

Growth in 2015 SME income highest in London

London’s SMEs saw the highest rate of growth in business income in 2015, followed closely by the North West region and the East of England, new data released from Barclays has shown.

Figures released in the bank’s annual SME Income Index demonstrated that overall year-on-year SME annual income has grown four per cent this year a significant slow down from 2014’s record rate of growth of eight per cent.

The capital’s SMEs experienced 5.2 per cent growth in income in 2015, with those in the North West experiencing 4.7 per cent growth, the East Midlands achieving 4.4 per cent growth and the east of the country with 4 per cent growth in annual income.

While London remains the region in which SMEs achieved the most income growth this year, the North West region has risen from fourth position to second, with business growth in the East Midlands raising it from eighth to third place in terms of regional growth.

Commenting on the bank’s findings, head of business banking at Barclay’s, Adam Rowse, said: It is encouraging to see that all regions saw a rise in annual income growth, with northern and southern regions equally represented in the top four, a positive indicator of the strength of SMEs all over the UK.

Published in Barclay’s annual SME Income Index, the data also revealed that small and medium-sized businesses in the UK’s property and construction sectors proved to be the most lucrative thanks to the nation’s continued property boom.

Construction is the sector in which business income amongst SMEs has grown the most in 2015, with property slipping one place on 2014 to second. The Index has also demonstrated positive annual income growth across all sectors, excluding agriculture and education.