As UK businesses brace for a challenging autumn budget, experts have revealed how several industries, already facing significant investment declines, are likely to struggle even further.
Securing funding is crucial for startups in any sector to launch and scale a business, and with the autumn budget just weeks away, access to finance tops the list of priorities for SMEs.
The money.co.uk business loans team has analysed government data to reveal which sectors receive the least investment and offered their insights on the importance of securing funding.
The industries that have seen the largest decrease in investment:
|
Rank |
Industry* |
Funds Raised Through EIS or SEIS in 2020-21 |
Funds Raised Through EIS or SEIS in 2022-23 |
Percentage Change |
|---|---|---|---|---|
|
1 |
Real Estate |
£6,000,000 |
£3,000,000 |
-50.00% |
|
2 |
Transport and Storage |
£13,000,000 |
£10,000,000 |
-23.08% |
|
3 |
Admin and Support Services; Public Admin, Defence and Social Services |
£131,000,000 |
£107,000,000 |
-18.32% |
|
4 |
Financial and Insurance |
£115,000,000 |
£112,000,000 |
-2.61% |
|
5 |
Arts, Entertainment and Recreation |
£33,000,000 |
£34,000,000 |
3.03% |
|
6 |
Wholesale and Retail Trade, Repairs |
£152,000,000 |
£165,000,000 |
8.55% |
|
7 |
Information and Communication |
£639,000,000 |
£722,000,000 |
12.99% |
|
8 |
Health and Social Work |
£38,000,000 |
£44,000,000 |
15.79% |
|
9 |
Professional, Scientific and Technical |
£322,000,000 |
£383,000,000 |
18.94% |
|
10 |
Agriculture, Forestry and Fishing; Mining and Quarrying |
£14,000,000 |
£17,000,000 |
21.43% |
Real estate has seen the biggest drop in investment in recent years – at a staggering 50%, from £6 million to £3 million. The number of UK companies in the industry receiving investment has also halved, from 20 to 10. Real estate investment is a key aspect of the economy. It fuels job creation in other sectors, such as construction, finance and legal services. The industry also contributes to urban regeneration, revitalising local economies.
The transport and storage industry has witnessed the second-biggest decrease in the amount of invested funds, at 23.08%. Fewer UK businesses in the sector are benefiting from investment, with the total number of firms on these schemes dropping by a third (33.3%) in the same period.
Rounding off the top three are admin and support services, public admin, defence, and social services. The sector has seen an 18.32% decrease in funding since 2020-21. In terms of companies receiving investment, this has also dropped from 385 to 315 (18.2%). Investing in this sector could allow businesses to streamline their operations, create jobs, and facilitate growth.