Things are looking up for businesses in South Yorkshire—sort of. According to the latest findings from the Quarterly Economic Survey (QES), local businesses feel a bit more positive, with improvements in areas like growth, cash flow, and hiring.
But despite this confidence boost, there’s still a noticeable hesitation around new investments. As autumn approaches, South Yorkshire’s business community eagerly awaits the government’s upcoming budget, hoping for support that could turn things around.
What is the Quarterly Economic Survey?
The Quarterly Economic Survey, or QES, is the largest independent survey in the UK that measures what businesses across the country think and feel. Run by the British Chambers of Commerce (BCC), the QES asks standardised questions each quarter to see where the economy might be heading. In South Yorkshire, chambers of commerce from Doncaster, Sheffield, Barnsley, and Rotherham join forces to ensure local businesses’ opinions make it to the ears of decision-makers.
South Yorkshire’s business confidence on the rise
Here’s some good news from the latest QES:
- Domestic growth has inched up for the sixth quarter in a row.
- Cash flow positions have improved by 4% since the last quarter, the best growth seen in this indicator for three years.
- Hiring is steady, with only 10% of firms expecting to reduce their workforce anytime soon.
- The region’s export sales are at their healthiest levels since 2020, with a 34% increase since last quarter.
So, there’s more cash flowing, more hiring, and growth looks a bit more stable. Yet, the optimism comes with a big ‘but’. These gains are marginal, and for many businesses, it feels like things are just hanging in there rather than really taking off.
Investment intentions remain flat
While there’s more confidence, businesses aren’t rushing to expand. Investment plans, particularly in training and new equipment, have actually dropped by 4% over the last quarter. Business leaders point to the long wait for the government’s budget announcement, which has left companies reluctant to commit to new spending.
Add to that a rise in concerns about corporate taxation—now at its highest recorded level—and inflation. These issues are making businesses wonder if it’s worth the risk of significant investments right now.
“We’re seeing some improvement in our export market and workforce levels, but the government budget needs to provide stability and direction,” says Oliver Coppard, South Yorkshire’s Mayor.
He stresses the need for national policies that support local growth and hints that the right budget measures could help more businesses feel secure enough to invest in growth. You can learn more about Yorkshire’s initiatives to boost regional business and infrastructure here.
Access to finance still a challenge
The survey also touched on another tricky issue—access to finance. This continues to be a significant challenge for many businesses in South Yorkshire. Despite the improvements in cash flow and some uptick in growth, getting the financing needed for bigger projects or expansions remains tough. This ongoing finance struggle underlines why South Yorkshire’s businesses are so eager to see what the new budget has in store.
Key takeaways for South Yorkshire businesses
In short, while there are positive signs, investment remains low and business growth feels fragile. The region’s business community is ready for more than just small gains—they’re looking for a budget that delivers the confidence boost and stability needed to really get things moving.
For more updates on local business events and initiatives in South Yorkshire, check out the latest news and opportunities here.
South Yorkshire’s businesses aren’t giving up hope, but they’re playing it safe, and it’s up to the upcoming budget to tip the scales. With continued improvements in the local market and some much-needed stability, we might just see South Yorkshire’s economy flourish in the months ahead.