MP promises ‘new era of Midlands-made prosperity’ as Barclays Bank paints picture of business growth despite despite global trade headwinds

Liam Byrne MP was speaking exclusively with the Express & Star as Barclays UK Corporate Bank revealed surveys carried out in May indicate businesses are more than five times more likely to feel optimistic (81 per cent) than uncertain (15 per cent) about their prospects over the next five years.

However, global trade tensions have had an impact with 77 per cent of Midlands firms, and 81 per cent of companies in the West Midlands, expressing concern over US tariffs and broader trade uncertainty - and nearly half (47 per cent) of businesses surveyed have said they are planning changes to their operations or supply chains in the US in response to President Donald Trump's tariffs.

Despite the challenges, many businesses are finding opportunity in adversity - according to the figures from research by Barclays which included its quarter one Business Prosperity survey with 1,000 businesses, an ad-hoc trade tariff survey with 100 UK business bosses and its May 2025 Consumer Spend survey which surveyed 2,000 UK adults, with more than a quarter of Midlands companies (28 per cent) saying the tariffs are likely to improve prospects.

Beyond tariffs, the top issues facing businesses in the Midlands include economic uncertainty (39 per cent), rising operational costs (38 per cent), market competition (32 per cent), and cybersecurity threats (31 per cent). 

Barclays revealed the data and insight as part of its inaugural Building Confidence in the Midlands event held at the bank’s regional headquarters in Snow Hill, Birmingham, on Friday (July 18) with Birmingham Hodge Hill MP Liam Byrne in attendance.

The event gave clients a chance to discuss trade, business prosperity and opportunities for Midlands-based businesses with the MP and senior leaders at the bank.

David Farrow, head of Barclays UK corporate and payments coverage, said the findings revealed by the bank “paint a picture of a region that is not only weathering global challenges but actively adapting and thriving” and he added:  “The Midlands continues to be a powerhouse of UK enterprise, driven by innovation, trade, and a confident outlook for the future. We look forward to working with all of our clients across the region to support them as they navigate and succeed in this dynamic landscape.”

Liam Byrne MP, chairman of the Government’s Business and Trade Committee, hailed the figures “a remarkable testament to the resilience, ingenuity and ambition of Midlands firms” but he said: “We can’t take this success for granted.”

He told how he’s leading an inquiry into how the Government can better back small businesses, especially in the face of growing global risks, and he added: “If we get this right, we won’t just unlock growth. We’ll unleash a new era of Midlands-made prosperity.”

The MP, who is a published author, told the Express & Star that driving down energy costs is key to the success of small businesses in the region and he said: “They’ve got labour costs that are going up, National Insurance contributions, minimum wage, the Employment Rights Bill and a lot of those changes are important if we are to raise living standards and make sure that families in the West Midlands are better off over the next couple of years but businesses are finding those new costs quite tough to swallow and that means government has got to step in and help them with other costs. 

“For a lot of retail and hospitality businesses the withdrawal of Business Rate Relief has been quite a heavy blow and when you put that together with energy costs going up it’s all proving an awful lot to take on at the same time. As a committee we've said to the Government really clearly ‘we’ve got to bring energy costs down'.”

He said he has highlighted the issue in Parliament and how he believes “thousands of businesses in the UK were completely ripped off during Covid, and just after Covid, being locked into completely outrageous energy costs” and many paid the price for that.

The Labour MP said he was "absolutely delighted” to bring the small business inquiry that he’s heading up to the West Midlands recently with Dudley MP Sonia Kumar hosting a round table for small business leaders in the constituency to highlight issues they are battling with.

When quizzed on the impact of tariffs and what the Government can do to help, he said: “The free trade deals are good, there are more of them still to come, but we’re now moving into a phase where you’ve actually got to deliver on the promise of the trade deals.

“Signing a trade deal doesn't magically make more trade, you've actually got to use them, and the key trade deal that we've got to really drive forward is with Europe; there’s still too much red tape that’s getting in the way of West Midlands exporters right now. That’s going to be a real priority for our committee to stay on top of.

“If Europe is going to grow and become more successful in the future then free trade with Britain is in their interest.”