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Salary freezes and restructures rife amongst Yorkshire businesses, research suggests

Rising interest rates and high costs have pushed many Yorkshire businesses to review their spending, freeze pay increases and restructure their operations, in a bid to manage their finances, according to new research.
Lizzie Murphy
By Lizzie Murphy
Published 21st Sep 2023, 06:00 GMT

A survey of 50 Yorkshire mid-sized businesses found that 40 per cent had already frozen salary increases, with a further 44 per cent planning to do so. Just under a third (32 per cent) had also frozen workforce bonuses.

The research, from Grant Thornton UK’s Business Outlook Tracker, found that spending on people costs has been reined in across most areas, with 46 per cent also having reduced their headcount and many businesses freezing recruitment (36 per cent).

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As well as tightening costs for people, many businesses in Yorkshire have had to make changes to their operations in a bid to manage costs. Almost all (92 per cent) have either already restructured their operations or have plans to do so.

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Chris Petts, restructuring partner at Grant Thornton UK. Picture supplied by Grant Thornton.Chris Petts, restructuring partner at Grant Thornton UK. Picture supplied by Grant Thornton.
Chris Petts, restructuring partner at Grant Thornton UK. Picture supplied by Grant Thornton.

Spending is being closely monitored within the market, with over half (52 per cent) having reviewed their non-essential spending and a further 38 per cent planning to do so.

Chris Petts, restructuring partner at Grant Thornton UK, said: “While inflation is, slowly, starting to fall, it’s clear that firms are remaining prudent and closely monitoring their spend across all areas from wages to recruitment and operations.”

Related topics:Yorkshire