Launch of UK Infrastructure Bank and Channel 4’s arrival in Leeds were highlights of roller-coaster 2021, says Grant Thornton

Grant Thornton UK LLP’s Business Outlook Tracker surveyed around.600 mid-market businesses every other month during a year that began in full lockdown and was followed by a gradual exit from restrictions up to ‘Freedom Day’ in July.

A spokesman said: "Optimism in Yorkshire and the Humber about the country’s economic prospects averaged 75% over the year, above the national average of 72%. There was a significant dent in confidence in the final survey conducted in late November and early December, with some 10% of businesses in the region describing themselves as ‘pessimistic’ about the future of the UK economy."

The views were gathered during the initial outbreak of the Omicron variant, just prior to the announcement of the Government’s Plan B measures. Previously, September’s panic buying and resulting fuel shortages registered the most marked setback in regional confidence, with 16% of businesses in the region ‘pessimistic’ when asked about the outlook for the UK economy.

Nationally, confidence around revenue growth within businesses peaked in the summer, with 83% expressing optimism, the figure plunging minus -17 percentage points (pp) to 66% by December.

The spokesman said: "The Yorkshire and Humber region ended the year just above the national average for the same metric, with 68% confident of revenue growth, down –22pp compared to the summer peak of 90%."

Andy Wood, managing partner of Grant Thornton UK LLP in Yorkshire and the Humber, said: “It’s no exaggeration to describe 2021 as a year like no other – with some significant local highlights such as the launch of the Leeds-based UK Infrastructure Bank in July, Channel 4’s launch in Leeds and some outstanding local deals coming to market as confidence and pent-up demand returned.

“However, our businesses have had to cope with a myriad of economic headwinds – many, such as energy price costs and labour challenges, have been outside of their control – and in general I think we can be proud of the old-fashioned Yorkshire-grit we’ve displayed.

“The new variant of Covid is clearly a concern and is casting a shadow over the festive period, particularly in retail and hospitality, but we are infinitely better prepared for any future challenges in terms of business resilience and, of course, unlike the first lockdown, we now have vaccines to help protect us from the virus.”