UK economy at a turning point: Large businesses hold key to Industrial Strategy
- Median turnover growth across UK corporates was at 10.5% per year from 2021-2024 exceeding the UK economy's overall growth
- HSBC UK’s biannual monitor of UK’s 14,290 corporate businesses shows performance is critical to success of government’s Industrial Strategy
- Majority of industrial strategy sectors (IS-8) are outpacing UK GVA growth
- Growth above the median rate is concentrated in regional clusters across the North West, Yorkshire and the West Midlands.
The performance of the UK’s largest companies is critical to whether national ambitions for the sectors outlined in the UK Industrial Strategy are realised, according to the latest HSBC UK Corporate Tracker
The biannual tracker records the geographical distribution, sector focus (in line with the government’s Industrial Strategy), ownership models and financial performance of the 14,290 largest UK companies1.
Using Beauhurst data, which draws on the most recent financial disclosures, the February edition reveals an economic climate on the cusp of transition; debt levels have steadied, financial positions appear stronger and corporates are driving a sustainable but cautious hiring environment.
Corporates – rare by count, critical for jobs
Corporates are a small but mighty group – they represent just 0.40% of all active UK businesses, yet employ 45% of the workforce.
Median turnover growth across the UK’s corporate businesses was at 10.5% per year from 2021-2024 exceeding the UK economy's overall growth.
Together, around 70% of total employment amongst companies operating in the eight industrial strategy sectors (IS-8) comes from corporates. These sectors, including advanced manufacturing, clean energy and life sciences, have been selected as central to boosting long-term productivity and attracting investment.
James Cundy, Head of Mid Market Corporates and Structured Finance at HSBC UK, said: “The performance of a relatively small number of large businesses is critical to the success of the UK’s Industrial Strategy and the UK’s future competitiveness.
“Decisions taken on investment, skills, R&D and supply chains will materially influence whether the UK meets its long term economic ambitions. That’s why HSBC UK is working closely with many of these corporates and their supply chains to support their continued growth. Connecting businesses to opportunities both domestically and internationally and ensuring they have access to the capital, insights, and expertise to deliver growth and success.”
Large companies have turned earnings strength into jobs growth
Total employment rises from around 14m in 2021 to 17.7m in 2024, indicating improved profitability has allowed large firms to expand both their capacity and workforce, not simply to deleverage.
UK-headquartered large firms and internationally connected companies increased headcount steadily through 2023–24, suggesting confidence in demand and operating conditions despite tighter financial and macroeconomic constraints.
Debt has shifted
Following an increase through 2021–22, net debt has now flattened. By 2024, EBITDA debt stood around 70% above pre-pandemic levels, compared with net debt at closer to 55% above 2019. The result is a clear improvement in debt serviceability.
Stronger earnings growth has improved leverage, pointing to balance-sheet normalisation. Firms with debt above 3 times EBITDA have declined by around 8% since 2019, indicating that earnings growth has outpaced borrowing.
James Cundy added: “Companies are moving away from crisis management and towards driving growth. Debt levels have steadied, and financial positions appear stronger.
“While employment growth softened towards the end of 2024 and national data points to a dip towards the end of 2025, reflecting a more cautious hiring environment, corporates remain central to sustaining employment across the UK.”
To view the tracker and insights paper visit: https://www.business.hsbc.uk/en-gb/corporate/insights/support/hsbc-uk-corporate-tracker
Media enquiries to:
Robert Cox, Media Relations, HSBC UK, robert.cox@hsbc.com
Notes to editors:
1 This report has been prepared using Beauhurst data. The following definition has been used to define UK Corporates:
A company must meet at least two of the three below criteria to be considered:
- the annual turnover must be more than £36 million
- the balance sheet total must be more than £18 million
- the number of employees is more than 250
Additional criteria: The analysis is restricted to active companies with full accounts filed from 2023 onwards. Companies without full accounts from then are excluded.
Each company presented is based on the top-level operating in the UK for which usable financial accounts are available. When the ultimate parent does not file consolidated accounts, the child entity is treated as the top-level entity. The ownership criteria is based on where the top-level company is headquartered.
- UK-headquartered: A company is classified as UK if it is either:
- The ultimate parent company (the top company in the corporate structure).
- If it is not the ultimate parent company, but the ultimate parent company is based in the UK, and the ultimate parent is not filing consolidated accounts.
- If it is not the ultimate parent company, but the ultimate parent company is headquartered in a tax haven country.
- Foreign-parent: If the company itself is UK-based but the ultimate parent company is not based in the UK or a country recognised as a tax haven, then the large company is classified as foreign-parent.
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