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Fibre2Fashion
07-07-2025
- Business
- Fibre2Fashion
UK business confidence falters amid rising costs & tax burden: BCC
Business confidence across the UK remains subdued following April's National Insurance rise, according to the British Chambers of Commerce (BCC) Quarterly Economic Survey for Q2 2025. The largest such survey since the tax change reveals only 49 per cent of firms expect turnover growth in the next year—up marginally from 48 per cent in Q1, and still among the lowest levels since late 2022. Tax remained the chief concern for businesses, cited by 56 per cent of respondents, followed closely by inflation at 52 per cent. Concerns over interest rates eased slightly to 24 per cent. Meanwhile, price rise expectations have moderated, with 44 per cent of businesses planning hikes in the next quarter—down from a near-record 55 per cent in Q1. Business confidence in the UK remains weak following April's National Insurance rise, with just 49 per cent of firms expecting turnover growth, according to the BCC Q2 2025 survey. Tax (56 per cent) and inflation (52 per cent) top concerns, while labour costs remain high. Sales and investment show little improvement. Businesses urge the government to reduce tax burdens and reform regulation. Labour costs remained the dominant pressure, affecting 73 per cent of firms. This impact is particularly strong in the transport and hospitality sectors, with 88 per cent and 83 per cent of firms respectively flagging wage-related cost pressures. Sales indicators remain largely unchanged, with only 32 per cent of businesses reporting growth in domestic sales over the last three months. Hospitality (36 per cent) and retail (34 per cent) continue to be the hardest hit sectors. On investment, just 21 per cent of firms have ramped up spending in the past quarter, while nearly a quarter (24 per cent) have cut back. The trend is more severe in hospitality (39 per cent) and transport (32 per cent). Profit expectations have seen a slight uptick, with 41 per cent anticipating growth, up from 39 per cent in Q1. Yet overall, the figures point to ongoing caution and pressure on UK businesses, with meaningful recovery still elusive. 'Rising employment costs, including increases in National Insurance and minimum wage, are placing significant pressure on margins—particularly for SMEs,' said a small manufacturing firm in Liverpool. 'The government missed an opportunity in the last budget to invest in business and support growth, instead taxing businesses until they are no longer viable,' said micro manufacturing firm in the West of England. 'The rising cost of doing businesses means confidence levels remain at their lowest levels since 2022. However, it's encouraging to see a drop in the number of firms planning to raise prices. Any signs of inflationary pressures easing is good news for business and the wider economy. But prices remain volatile,' said Shevaun Haviland, director general of the BCC . 'Last week, the Prime Minister acknowledged at the BCC's Global Annual Conference that business has been asked to shoulder a huge tax burden. We now need the government to rule out any further business taxes in this year's budget.' 'Businesses have welcomed the series of long-term strategies from government in recent weeks, all designed to drive forward economic growth. Our research shows businesses are stuck in a rut and more needs to be done at pace by ministers to turbocharge the economy and boost business confidence,' added Haviland. 'Businesses are clear—they want their costs reduced, regulation reformed, and skills barriers removed. Action by policymakers now, will help businesses out of this confidence slump and give firms the tools to boost growth.' 'Business sentiment in Q2 remains fundamentally subdued, following last autumn's tax increase announcements and the more recent introduction of global tariffs. April's rise in National Insurance contributions has cemented tax as the dominant concern for firms. Businesses are entering a new employment landscape marked by structurally higher labour costs and administrative requirements, fuelling increased anxiety about redundancies,' said David Bharier, head of research at the BCC . 'While there has been some easing in our price expectations indicator, this follows a spike to near historic highs in Q1 and may indicate that firms already baked in the recent NICs increase. Inflation is likely to remain volatile in the short term, as any escalation in global conflict could trigger renewed shocks to commodity and shipping prices,' added Bharier. 'SMEs are operating in an increasingly unpredictable world and have limited capacity to absorb further disruption.' The survey, conducted by BCC Insights Unit and the UK Chamber network between May 12 and June 9, gathered responses from over 4,500 businesses, 93 per cent of which were SMEs. Fibre2Fashion News Desk (SG)
South Wales Argus
04-07-2025
- Business
- South Wales Argus
Welsh firms hit by global tariff changes, survey finds
Chambers Wales South East, South West and Mid's latest Quarterly Economic Survey for the second quarter of 2025 shows a mixed outlook for exporters, with 41 per cent of businesses reporting stable export sales. However, the survey also points to signs of growth. David Pena, director of international trade at Chambers Wales South East, South West and Mid, said: "It has been an unpredictable period for international trade, with ever-changing tariff decisions and trade talks progressing. "Tariffs can act as a trade barrier to fostering long-term growth, and it is clear that the US' decisions have impacted businesses in Wales whether directly or through supply chains." Nearly a third of businesses said export orders and advanced bookings increased in Q2, up from 25 per cent in Q1. The report highlights the impact of US trade policy, including President Donald Trump's 'Liberation Day' announcement and new tariffs introduced in April. Fifteen per cent of Welsh firms reported being affected by the 10 per cent US tariff on imports, while 23 per cent said their business or supply chain felt the effects of wider global tariffs. Some firms said the tariffs had not impacted trade, but others reported a slowdown in US business, with fewer enquiries and orders. Nearly a quarter said they would reconsider the country of origin for goods to avoid tariffs. The survey also examined business conditions beyond trade. Forty-four per cent of businesses attempted to recruit in the past three months, but two-thirds faced difficulties due to a lack of suitable candidates. Gus Williams, interim CEO of Chambers Wales, said: "Despite a mixed picture in the world of international trade, it is heartening to see the positives in our survey results from increases in export orders to investment plans for training."
Business News Wales
03-07-2025
- Business
- Business News Wales
Economic Survey Reveals Mixed Quarter for Welsh International Trade
An evolving trade landscape produced mixed results for Welsh businesses who trade internationally in Q2 2025, according to Chambers Wales South East, South West and Mid's latest Quarterly Economic Survey. 41% of businesses in Wales reported that their export sales remained constant in Q2. However, 31% stated that export orders and advanced bookings increased during the same period, compared to 25% in Q1, marking a positive shift in future custom. Following President Trump's 'Liberation Day' announcement in early April and changing tariffs throughout the quarter as a result of UK-US trade talks, businesses in Wales revealed the impact the announcements have had on their firms. 15% of businesses in Wales said they had been affected by the 10% tariffs introduced by the US on imports, while almost a quarter (23%) said that their business or supply chain had been affected by wider global tariffs that had been implemented by the US. While some businesses shared that the tariffs did not have an effect on their trade, others reported that trade with the US had slowed down, with fewer enquiries and a reduction in orders due to uncertainty. 23% of businesses in Wales indicated that they would reassess country origin of goods to avoid the impact of tariffs. David Pena, Director of International Trade David Peña, Director of International Trade at Chambers Wales South East, South West and Mid, said: 'It has been an unpredictable period for international trade, with ever-changing tariff decisions and trade talks progressing. Tariffs can act as a trade barrier to fostering long-term growth, and it is clear that the US' decisions have impacted businesses in Wales whether directly or through supply chains. 'At Chambers Wales, we stand for trade, commerce and economic growth and this data will shape how we support businesses in Wales through market volatility and towards growth.' Away from trade, the Quarterly Economic Survey for Q2 also revealed businesses' experiences of recruitment, plans for investment and key concerns of the last quarter. 44% of businesses in Wales attempted to recruit in the last three months, and two thirds of these businesses experienced difficulties because of a shortage of suitable applicants. Over two thirds of businesses (67%) expect their workforce to remain constant in the next quarter, with 24% increasing their investment plans for training in Q2, suggesting that firms may be turning to upskilling and staff development in lieu of recruiting. As per previous Quarterly Economic Surveys, businesses still feel under pressure to raise their prices because of labour costs and taxation remains the external factor causing the most concern. Gus Williams, interim CEO of Chambers Wales South East, South West and Mid, said: 'Despite a mixed picture in the world of international trade, it is heartening to see the positives in our survey results from increases in export orders to investment plans for training. 'Of course, pressures persist particularly around recruitment, labour costs and taxation. With the UK Government unveiling its Industrial Strategy and Trade Strategy, we are seeing the beginnings of a long-term coherent approach for business support which may alleviate some of the recurring concerns that businesses in Wales are sharing with us.'
