The majority of London businesses expect 2023 to be more successful than 2022, despite challenging economic forecasts, according to the latest data from Lloyds Bank.

More than a half (54%) of businesses said they are confident they would have greater success in the coming 12 months, compared to the past year. More than a quarter (28%) were not confident about being more successful in 2023 and one in six (16%) expect their business to perform at the same level in the next year. The research was carried out between December 1 and December 14 as part of additional polling for the monthly Lloyds Bank Business Barometer.

Firms in the capital projected a more upbeat outlook for 2023 with almost half (45%) expecting a higher turnover than in 2022. A quarter (24%) of businesses expect turnover to increase by between 5% and 19% and a sixth (16%) anticipate turnover to increase by more than 20%.

When London businesses were asked what they would do to fuel growth, 90% said they were planning an investment drive. Businesses reported that funding would be used to invest in energy efficiency measures (35%), improve sustainability measures (35%) and increase wages for employees (33%).

Alongside investment, the city’s firms plan on making several New Year’s resolutions. These include improving productivity (43%), followed by retaining existing staff (35%). More than a third said they are planning to keep a closer eye on costs, although 13% are investing in paying bonuses and short-term incentives. Almost a third (29%) are intending to target growth from their existing customer base.

Becci Wicks, regional director for London at Lloyds Bank said: “At the end of a challenging year for businesses everywhere, it’s encouraging to see many of those in London preparing for a brighter 2023. What’s more, the vast majority clearly spy opportunities to drive growth in 2023. Of course, economic headwinds will persist as we enter the new year. But even in troubling of times, we’ll remain firmly by the side of London businesses, offering the advice they need to manage working capital effectively and position themselves for growth.”