Last Updated on December 15, 2025
New data shows that health and social care businesses are reporting stronger demand for their products and services. This comes as leaders are also turning to AI to drive efficiencies and improve clinical outcomes. These findings are taken from the latest Barclays Business Prosperity Index, where nearly three quarters (74%) of business leaders in the health and social care sector reported that sales pipelines and overall demand for their products and services were stronger than average for Q3.
Meanwhile, anonymised Barclays client data showed smaller businesses, including those that offer independent high street services, were more likely to build savings buffers. SMEs within Barclays UK Business Bank increased savings by 6.4% year-on-year in Q3, compared to a 2.4% decline among their larger counterparts in the UK Corporate Bank.
Despite a slight decline in cash inflows (1.1%) outflows declined by 2.2%, meaning net cash flow, the difference between cash coming in and going out, was up 1.1%, amid disciplined spend control.
A large majority (86%) of leaders surveyed in the health and social care sector, reported plans to increase investment in AI over the next 12 months, with nine out of 10 (96%) believing that it will deliver tangible benefits for their business.
AI solutions were among the highest investment priorities across the sector, with four in 10 respondents (39%) reporting that AI could improve clinical outcomes. The positive impact on quality of patient care and user experience (cited by 31%) is a clear motivation for increased investment in the technology.
Business leaders also underlined the benefits of AI to their own bottom line, with 38% saying it could improve employee wellbeing and reduce burnout. The same number said that the technology could be used to streamline processes, allowing staff to spend more time with patients, and a third (33%) of respondents said it would improve workforce retention. This sentiment equates to business leaders reporting to increase AI and tech investment by a fifth (20%) over the next 12 months.
Despite enthusiasm for the potential of AI, health and social care business leaders called out a number of barriers to investment and implementation, including:
- Lack of finance for new equipment or R&D (31%).
- The time and cost involved in training staff to use new AI (27%).
- Concerns about privacy, ethics and responsible AI use (32%).
Barclays client data also showed a gradual improvement in credit demand in Q3, suggesting higher confidence and ambition to invest. Loan volumes grew by 2.8% across the quarter – predominantly driven by larger UK Corporate Bank clients, which skew towards sizeable care businesses. The trend was mirrored among smaller firms, with Barclays lending £405m to Business Banking SMEs via the Barclays Business Prosperity Fund, up to Q3 2025. This lending appetite tallied with businesses across all sizes reporting plans to increase investment across the board, by 6.8% over the next 12 months.
Commenting on the latest findings, Emma Palmer, Head of Healthcare at Barclays UK Business Banking, said, 'It has been a challenging time for smaller health and social care businesses, with increasing cost pressures and low consumer confidence. This is reflected in the data, with SMEs increasing savings by over 6% year-on-year in the last quarter, reflecting a cautious approach ahead of the Chancellor’s Autumn Budget. Despite this, we have seen an increase in SME lending, driven by our targeted approach to improving access to finance for health and social care SMEs.
'Looking ahead, it is encouraging to hear the ambition of business leaders to invest in AI technologies to streamline processes, reduce operating costs, and improve patient care. We are proud to have lent over £400m to health and social care SMEs this year and are ready to support their investment plans as they aim to grow and improve patient outcomes in 2026.'
Steve Fergus, National Head of Healthcare - Large Corporate at Barclays Corporate Bank, said, 'After a period of turbulence and economic uncertainty, an uptick in credit demand and loan volumes across the Corporate Bank indicates growing confidence and ambition to invest in the health and social care sector.
'AI is at the forefront of this ambition and the benefits to patient care are clear. At Barclays, we’re backing these ambitions through our £22bn Business Prosperity Fund and tailored support for innovators. Whether it is helping business leaders navigate their first funding round or connecting them to specialist advice, our Innovation Banking teams are here to unlock growth at every stage of the journey.'
To read the full Barclays Business Prosperity Index Health and Social Care report, visit the Barclays website.
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