It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.
It has become something of a tradition, given that we’ve been doing this now for over 30 years.
Here we speak to Gareth Singleton, regional managing partner at BDO in Yorkshire & the Humber.
Much like Leeds United Football Club, the number of uncertainties faced during the second half of 2024 have reduced, providing a more stable platform as we enter 2025. The outcome of the UK and US elections, and the recent Autumn Budget, are now known and, regardless of whether businesses are happy or not with the results, they can plan ahead with increased certainty. While there does remain uncertainty around US trade tariffs, recent reports suggest the impact on UK exports could be significantly less than others.
While Leeds United has found some form and is ending the year in confident mood, we expect the regional business community will need a little longer to gain confidence during 2025. The expected reduction in interest rates throughout 2025, coupled with the easing of uncertainties referred to above, should lead to an increase in confidence and a commitment to invest in strategic growth plans moving forward. This will undoubtedly help regional sectors, such as manufacturing. While 2025 is likely to bring with it continued growth in the region, we do expect businesses to end the year with a more confident outlook than how they started, leading to a more meaningful growth agenda in 2026.
The productivity puzzle remains a real challenge for most sectors in the region and across the UK. In Yorkshire, the professional services sector, including financial services, is a significant part of the local economy. We expect 2025 to be the start of a revolution for this sector, in terms of AI and technology, driving genuine productivity gains which should benefit the region more than most, given the makeup of the businesses in the local economy.
