South Yorkshire business confidence drop 'canary in the coal mine', warns chamber boss
Business confidence among firms in South Yorkshire hitting at a three-year low should be seen as “a canary in the coal mine”, a local leader has warned politicians.
More than 250 businesses across South Yorkshire participated in a Quarterly Economic Survey conducted by the region’s three business chambers and sponsored by the South Yorkshire Mayoral Combined Authority.
The survey, conducted around the November Budget, saw overall business confidence at a three-year low, with concerns around the cost of hiring and levels of corporate taxation have risen to record highs.
Respondents reported rising operational costs and falling sales and cash flow, as well as recruitment difficulties.
Dan Fell MBE, chief executive of Doncaster Chamber, said: “These results show just how relentless and unforgiving 2025 was, driven by the tax, regulatory and employment landscape.
"They are nothing short of a canary in the coal mine. If we fail to heed this warning, not only will the country fall short of the growth needed to achieve prosperity, but we risk heading in the opposite direction.
"I hope these findings send a clear message to policymakers locally, regionally and nationally: continued uncertainty and pressure on businesses will only push the trajectory further downward.”
Louisa Harrison-Walker OBE, chief executive of Sheffield Chamber of Commerce and Industry, added: “Confidence and turnover have dropped to its lowest level in three years – with cashflow not looking much better. What a devastating set of results.
"What this shows is just how hard our businesses have worked, and how much they have achieved in 2025 despite the economic conditions and uncertainty created by government policy.
"Businesses in South Yorkshire are remarkable, but they could achieve even more if taxation and the cost of employing people were manageable.
"If anything, it makes me look ahead to 2026 with cautious optimism and a renewed determination to represent our members, including working closely with South Yorkshire’s Mayor and our local authorities to deliver the growth that we know will benefit South Yorkshire.”
Carrie Sudbury, chief executive of Barnsley & Rotherham Chamber of Commerce, said: “These results closely mirror what we’re hearing from our members across the region.
"Many businesses are navigating an exceptionally challenging economic climate, shaped in part by ongoing uncertainty around government decisions and the Budget process.
"At times like these, it’s more important than ever that we champion our business community and help rebuild confidence wherever we can.
"Your local Chamber remains firmly by our member’s side, whether that’s through support on Social Value or the wider guidance and advocacy they need to move forward.”
The results have been released after a parallel survey by West & North Yorkshire Chamber of Commerce found business confidence in those regions has been improving.
Its findings showed improving sales, both domestically and overseas, as well as rising levels of investment and expectations on profitability.
However, concerns about overheads, most notably taxation, remain high and there appears to be a continuing reluctance to grow headcounts.