The link between economic policy and your business’s bottom line

In today’s globalised world, UK businesses are increasingly influenced by what’s happening beyond our borders. Global trade tensions, shifts in U.S. economic policies, and geopolitical conflicts—like Russia’s role, can all have a major impact on your business’s cost forecasting and investment decisions.

As we move through 2025, the effects of these uncertainties are becoming clearer. That’s why it’s more important than ever for businesses to have a solid financial plan and stay flexible in the face of an unpredictable world.

Global Trade Tensions

Trade disputes between major economies often cause disruptions in supply chains, raising costs and adding uncertainty. A good example is the recent U.S. tariffs on UK steel and aluminum, which have created concerns for UK manufacturers. The UK exports about 209,000 tonnes of steel to the U.S. each year, making it the second-largest market for UK steel after the EU. These tariffs have driven up prices, and the UK government has responded with a £2.5 billion investment plan to help protect the steel industry. But this is just one example of how global issues are affecting businesses in the UK.

U.S. Economic Policy

Decisions made by the U.S. government don’t just affect the U.S.—they have ripple effects worldwide. When the U.S. Federal Reserve raises interest rates, it makes the U.S. dollar stronger compared to other currencies, including the British pound. This can make UK goods more expensive for international customers, which affects exports and profits. U.S. fiscal policies, like tariffs and sanctions, also play a role in shaping global trade, and UK businesses need to stay informed and be ready to adjust their strategies when these changes occur.

Geopolitical Conflicts

Geopolitical risks, like the ongoing Russia-Ukraine conflict, can create huge economic uncertainty. The war has led to surging energy prices, which directly impacts the operational costs of UK businesses. According to the Office for National Statistics (ONS), energy prices in the UK rose by 45% from 2022 to 2023 due to disruptions in energy supplies from Russia. UK businesses are also dealing with supply chain delays, caused by sanctions and trade restrictions. These disruptions make it even more important for businesses to plan ahead and stay agile.

What the Numbers tell us

The global uncertainty is already starting to hit UK businesses. A recent study from the Institute for Fiscal Studies found that the increased volatility in stock prices and earnings forecasts is linked to lower investment rates in UK companies. Many businesses are being forced to cut staff, raise prices, or scale back on investments, which can slow growth and hurt long-term success.

Why Flexibility is key

With so many unpredictable factors in play, businesses need to be proactive in their financial planning. The key to weathering this storm is flexibility—especially when it comes to managing your finances. Flexibility allows you to adapt to disruptions, keep your cash flow healthy, avoid locking into long-term debt, and make smart investment decisions, even when markets are fluctuating.

Maintaining Strong Cash Flow

Cash flow is the lifeblood of any business, particularly in uncertain times. Flexible financing options, like leasing, allow businesses to preserve capital, acquire necessary equipment, and maintain liquidity. By financing assets instead of paying upfront, you free up cash to handle unexpected costs or take advantage of growth opportunities.

Leasing also provides predictable, fixed payments, which helps businesses avoid the surprise of rising interest rates or fluctuating costs. Plus, it gives you the flexibility to upgrade equipment as needed, ensuring that your business remains competitive without the burden of outdated machinery.

Adapting to Changing Conditions

At the end of the day, flexibility is about being able to quickly respond to change. That’s where flexible financing options come in, giving businesses the ability to adjust their financial commitments when external factors—like market volatility, inflation, or trade disruptions—come into play.

At Buckingham Leasing, we understand that the key to surviving and thriving in today’s economy is flexibility. Our range of flexible financing options is designed to help you protect your cash flow, preserve capital, and stay adaptable, no matter what challenges come your way. By leveraging these solutions, businesses can stay strong and continue to grow, even in the face of economic uncertainty.