BUSINESS sentiment “plummeted” in the last quarter of 2024 to levels last seen at the height of the coronavirus pandemic, according to new research by the West and North Yorkshire Chamber of Commerce.
The chamber’s Quarterly Economic Survey for the last three months of 2024 shows that rises in employer National Insurance contributions and the minimum wage – announced in the Chancellor’s Autumn Budget – have led to many local businesses revising their profitability projections downward, as well as placing any plans for investment or hiring on hold.
Taxation is now by far the principal cost pressure facing companies in the region, with labour costs and inflation also high on business leaders’ agendas, according to the survey.
The manufacturing sector in particular fared worst, with sales, orders, recruitment and investment now at the lowest level since the height of the pandemic, the survey said.
In response to the research, the Government told the Telegraph & Argus it would “support business so we can make all parts of the country better off”.
Amanda Beresford, chair of West and North Yorkshire Chamber of Commerce, said: “The results of the latest Quarterly Economic Survey are not what we wanted to start the new year with.
“Business confidence declined in the final three months of 2024, with employers reporting declining sales, reduced hiring intent, expressing a shrinking appetite for investment and reducing forecasts when it comes to profits.
“Indeed, one needs to travel back to the height of the pandemic to see such poor levels of sentiment among businesses.
“Although firms have become accustomed to uncertainty over the past eight years, they still do not have the stable platform upon which sustained economic growth can be achieved.
“Let us hope optimism returns in the months ahead and that we finally as a country get back to growth.”
A Treasury spokesperson said: “We delivered a once in a Parliament Budget to wipe the slate clean and deliver the stability businesses so desperately need.
“The independent Office for Budget Responsibility confirmed that it delivers lower unemployment and higher wages over the coming years, and more than half of employers will either see a cut or no change in their National Insurance bills.
“Now we are focused on delivering our Plan For Change which will get Britain building, unlock investment and support business so we can make all parts of the country better off.”
