“The Iran war has had a huge impact on business confidence and our customers are
postponing investments that they had planned to make. It has been the hardest quarter for us since the financial crash of 2008.”
“Despite having good rates of remuneration there is a severe shortage of skilled personnel available making recruitment and long-term expansion difficult. The business has taken on apprentices as a long-term option but will only see the rewards in 2 to 3 years’ time, placing extra financial pressures in the short term. Due to the cost of living crisis, customers’ average spend is down. Increase in Business Rates and increases in NIC’s & wages contributing to additional pressures.”
“Our current operating environment is becoming increasingly challenging due to rising costs, growing demand for services and increasing expectations from clients. Costs associated with staffing, software licensing, cybersecurity, insurance, utilities and compliance continues to rise year-on-year, placing pressure on operating margins. At the same time, we are committed to delivering value to our clients and have consciously absorbed many of these cost increases rather than passing them directly on. Whilst this approach has helped maintain strong client relationships and supported organisations facing their own financial pressures, particularly within the charity and third sectors, it has resulted in increased pressure on profitability.”
“We are extremely busy with good long-term orders. We need to invest and grow. High
taxation slows down the pace of recruitment and investment. New employment rules mean we are very careful in who we take on.”
The British Chambers of Commerce’s Quarterly Economic Survey is now in its 38th year as the largest UK private sector survey of business sentiment. The survey is a leading indicator of UK GDP growth and is closely watched by policymakers, including HM Treasury and the Bank of England.
