Business conditions and confidence levels have weakened dramatically across South Yorkshire since Government’s Autumn Budget, according to finding from the region’s latest Quarterly Economic Survey.
The Chamber says responses from about 300 companies of varying sizes paints a troubling picture of how the local economy is performing, and how businesses have ultimately born the brunt of some of the more controversial measures announced by Westminster.
After charting a positive trajectory in recent surveys, key indicators like domestic sales performance, exports, and cashflow positions have all taken a sharp downward turn this quarter, while confidence in turnover and profitability levels has similarly declined. Conversely, the proportion of firms expecting the prices of goods & services to go up has increased, reaching a two-year high of 59%.
In a joint statement the respective Chief Execs for Doncaster, Sheffield and Barnsley & Rotherham Chambers of Commerce issued the following joint statement:
“It’s evident that the Autumn Budget is already exacting a heavy toll on business owners, who are having to make some tough calls as a result; whether it’s scaling back their investment intentions; putting up their prices; or potentially even thinking about reducing their workforce levels.
“Although there are undoubtedly other factors at play contributing to this collapse in optimism, it’s hard not to point at what our survey respondents told us is their biggest source of consternation right now. Ever since 2021, inflation has consistently remained the number one worry for firms here in South Yorkshire, often eclipsing any other anxieties by a wide margin. Yet, this time around, corporate taxation towered well above it, being cited as a major issue for over 63% of firms. For context, in the previous quarter leading up to the Autumn Budget, this number was at only 37%.
“In times of economic turmoil, Westminster ought to be encouraging entrepreneurialism and growth. Yet the consequences of their Autumn Budget — and specifically the corresponding hike in the National Insurance contributions paid by employers — are plain to see here. Business confidence is now falling at an alarming rate.
“With that said, while we do welcome planned interventions to restore stability in the long term, such as the forthcoming industrial strategy, something needs to be done in the here & now to convince businesses that the Government is attuned to their plight and that it indeed has their back.
“Of course, we know that South Yorkshire’s ever-resilient private sector will capably rise to whatever challenges await them in the year ahead, and can also take solace in the fact that great business always a way. No matter how tough the economic conditions may get. Not to mention, we here at the South Yorkshire Chambers will be right at a hand to offer whatever support we can to these intrepid firms, and to hopefully play a big role in their success going forward.”
