Tax increases and interest rates top concerns for Hull and Humber firms, according to survey

In a statement, the Chamber said that the message from businesses had been “consistent and clear” in its first round of meetings, and that increases in the minimum wage and National Insurance increases are “putting some well established businesses under considerable fiscal pressure”.

The survey was carried out before the recent Spending Review, with fieldwork conducted between 10 February and 10 March.

The chamber added that despite recent cuts in the Bank of England Interest rate, Hull and Humber businesses were “sounding alarm bells about turnover and profit expectations”.

Chamber chief executive, Dr Ian Kelly, said: “This is yet another challenging set of figures for Humber businesses, who could well do without having to deal with increased costs at a time of such uncertainty across the board.

“A lot of businesses who have just about been keeping their heads above water will find the extra coasts to their businesses a further challenge, and we can only hope that most will be able to deal with this latest test.

“We are already seeing a cut in investment and training, with firms expecting a drop in turnover and profits, so the prospects for growth in the current market seem to be limited at best.”

According to the survey, 53 per cent of firms said they thought their turnover would worsen in the coming months..

Only 20 per cent of businesses said they were working at full capacity – a slight improvement on the previous quarter – but 89 per cent of firms said they were concerned about pay settlements. 79 per cent said they expected their prices would have to increase.

Business confidence was down, with fewer firms saying they were planning to invest in new plant or machinery. Investment in training also took a tumble, with 55 per cent of companies saying they weren’t planning to invest in the next three months.

Turnover expectations were also in negative territory with 53 per cent of firms saying they thought their turnover in the coming months would fall.

Of the firms who had tried to recruit staff, 90 per cent said they had difficulties.

On the domestic front, more firms said their orders had decreased, while the home orders showed a slight improvement, with slightly more firms reporting an improvement in their order books.