South Yorkshire Chambers Urge Government To Give Firms a Reason To Be Optimistic Again, Following Another Drop in Business Confidence Levels
As economic conditions in South Yorkshire continue to worsen and business confidence levels remain dispiritingly low, the three regional Chambers of Commerce are urging Government to give firms a reason to be optimistic again.
This appeal follows the publication of South Yorkshire’s latest Quarterly Economic Survey results, which paint a concerning picture of how the region’s private and voluntary sectors are faring right now.
Carried out between the 10th of February and the 10th of March, this was the first iteration of the QES to be undertaken in 2025 and the first since the controversial Autumn Budget (although the tail end of last quarter’s poll did overlap with that event). What is most striking here is that almost every metric used to gauge business sentiment is either on a downwards trajectory or in the middle of an ongoing slump.
Among other things, respondents indicated that their domestic sales, cashflow positions, investment intentions, and overall confidence levels are all declining. What’s more, there are also signs of a looming hiring freeze in South Yorkshire, while concerns about the impact of corporate taxation are at a historic high too.
Reacting to the findings of the Quarterly Economic Survey, the three regional Chambers of Commerce (those being the respective networks for Doncaster, Sheffield and Barnsley & Rotherham) issued the following joint statement:
“Last quarter we observed that business conditions and confidence levels in South Yorkshire had fallen across the board and it’s troubling, but not at all surprising, to learn that the situation hasn’t improved much in the intervening months. Indeed, times continue to be extremely tough for firms and, without the promise of light at the end of the tunnel, it’s unlikely that their confidence will return any time soon.
“After a sharp drop in Q4 2024, UK sales have reduced by a further three percent this quarter, and domestic orders have similarly fallen by another four percent. Meanwhile, the indicator that we use to measure workforce levels is also pointing in the wrong direction — with it now at its lowest since early 2021 — and cashflow positions have plummeted to the worst they’ve been in two years. Even more concerningly, only 41% of survey respondents are anticipating an improvement in how profitable their businesses will be in the coming months.
“Against this uncertain backdrop, it’s only natural for firms to be cautious about their plans for the future. This is borne out in our data, with investment intentions for both machinery and staff training remaining stubbornly low, and capacity also being reduced.
“To those in the private and voluntary sectors who are feeling the squeeze, we’d like to remind you that you are not alone here. Whether it’s through your local Chamber, a similar business organisation, or the various support functions provided by our public sector colleagues; help is out there. So, please do not hesitate to reach out.
“And to those in Westminster, we urge you to offer some light at the end of the tunnel and a reason to invest again. Businesses — who, of course, shouldered the brunt of the Autumn Budget — are about to feel the real-world impact of increased national insurance contributions and a hike in the National Living Wage.
“Last week’s Spring Statement did little to alleviate these pressures, so it’s time for Government to articulate exactly how it’s going to help our wealth creators in the mid-term. Otherwise, we are unlikely to see these worrying economic trends reversed any time soon.”
The Quarterly Economic Survey is the nation’s largest independent review of business sentiment. Led by the British Chambers of Commerce (BCC), it asks a series of standardised questions — that are repeated every three months — to monitor if there are any fluctuations, developing trends or other points of interest that help shed light on how the UK’s private sector is currently fairing.
Conducted by the respective Chambers of Commerce for Doncaster, Sheffield and Barnsley & Rotherham, the South Yorkshire iteration of the QES is sponsored by Clear Insurance Management and the South Yorkshire Mayoral Combined Authority.
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