The latest FSB Yorkshire, the Humber & North East Quarterly Small Business Index (SBI) has been published today. It shows small business confidence remains low but is rising. Confidence among small businesses in the region remains negative (-10) but is an improvement since Q2 2023 (-24). This is the highest confidence index score since Q1 2022.

Local businesses in our regions tell us that the biggest barriers to growth are the general economic conditions in the UK (60%), utility costs (44%) and the tax burden (33%). The Chancellors’ Autumn Statement on 23 November is a chance to give small business owners support to grow the economy.

Other key findings from the research are:

• The employment picture for small businesses in Yorkshire and the Humber & North East over the last 3 months has worsened. No-one responding to our survey had increased head count over the previous 3 months. Looking ahead to Q4, staffing levels are predicted to remain relatively steady, with 10% expecting to increase their headcount and 12% expecting it to decrease. 71% expect it to stay the same.
• Wages are increasing. In Yorkshire, the Humber & North East, just over half (54%) of small businesses increased wages over the past 12 months.
• Our small firms are ambitious. In Q3 2023, 38% of small businesses in Yorkshire, the Humber & North East said that their growth aspirations in the next 12 months were to grow either rapidly (increase turnover/sales by over 20%) or moderately (up to 20%).

Mohammed Hussain, FSB Policy Representative for the Region, said,

“The cost of doing business crisis over the past year and a half has caused turmoil for business owners. This latest regional research shows signs of stabilisation in small firms’ performance. It’s good to see confidence improving but it’s still in negative territory, reflecting just how hard it is to run a business right now.

“This research shows why the FSB is right to call for the Chancellor to help small businesses in the forthcoming Autumn Statement. Specifically, the Chancellor needs to take a stand on late payment. Eliminating this scourge would add £2.5 billion to the economy and save 50,000 firms from going bust every year. The 75 per cent business rates discount for small retail, hospitality and leisure firms is due to run out at the end of March. The Chancellor must extend this to give relief to small businesses in consumer-facing sectors. We also want the archaic business rates system to be overhauled.

“Economic growth in our region will be driven by small firms. Our research shows that confidence is still fragile. The Chancellor has the opportunity to help small businesses grow the economy and in doing so support our communities across Yorkshire, the Humber and the North East.”