The latest Federation of Small Businesses (FSB) Small Business Index is out, and despite a challenging economic environment, business confidence in the Yorkshire, Humber and the North East has seen a slight increase.
Confidence amongst small businesses in Yorkshire, the Humber & North East is now again positive (1%) after a temporary decline in Q4 2021 to -17%. It is, however, below the previous positive figure seen in Q3 2021 (24%).
Despite this, the results for Q1 2022 sit well above the level of confidence seen through 2020 (-51% average through the year), and suggests a return towards ‘normal’ following concerns around the Omicron variant at the end of 2021.
Whilst this may indicate early signs of optimism seeping into the region after the roller coaster of uncertainties associated with the pandemic. It’s also important to note that Small businesses in the region display confidence below the current UK average (15%). The only region which scores more poorly is the South West (-1%), with the strongest performing region being London (43%).
Other key headlines from the report are:
- Confidence increases from the previous quarter in Q1 2022 – despite this, yearly scores are below those seen in Q1 2021.
- Businesses in Yorkshire, the Humber & North East report a net positive balance in revenue over the last 3 months, albeit with a decline relative to Q3 2021.
- Revenue in the region remains positive but sees a slight decline relative to Q3 2021.
- The number of small businesses in the area taking on new staff continues to outnumber those who are losing staff in Q1 2022.
- The number of small businesses increasing headcount (14%) continues to stay above those decreasing headcount (8%).
- The investment intentions for Yorkshire, the Humber & North East businesses remain positive and just above the UK average, and are on par with scores seen in Q4 2021.
- In Yorkshire, the Humber & North East, the general economic conditions in the UK (62%), input costs (47%) and consumer demand 31%) are the greatest perceived barriers to growth over the coming twelve months.
Gill Askew, Yorkshire, Humber and North East policy representative, said:
“It is great to see business confidence increasing this quarter. I am hopeful that this may indeed indicate that the stark dips of 2021 caused by changes in lockdown restrictions are finally settling. However, times are clearly still tough and it is concerning to see we are below the National average for confidence, showing that much more needs to be done to signal a long-term stable economy for small businesses”
“As our local elections have brought new elected representatives, we will continue to work with and lobby local policymakers and partners on the necessary levers for positive change.”