Mid-market businesses in Yorkshire show surge in confidence
The survey shows that Yorkshire businesses have formed plans to pass rising employment costs on to customers (up to 75% from 71% in December). Employees of mid-market businesses are also more likely to be impacted by business leaders’ plans to offer reduced or no pay increases and bonuses, as well as reviewing their employee benefits offering.
Despite these challenging decisions, the research, which offers a rolling indicator of mid-market business sentiment, shows a surge in optimism throughout the Yorkshire business community. A striking 83% of mid-sized firms in Yorkshire express optimism about their funding position over the next half-year, up from 79% in December 2024.
By contrast, larger corporates across the UK are now less optimistic about both their own fortunes and those of the wider UK economy, as the Business Outlook Tracker recorded a drop in confidence from the 200 larger businesses also surveyed:
- -10pp decrease in their optimism about the outlook of the UK economy
- -3pp decrease in their optimism about their funding position and their revenue growth
- -2pp decrease in those expecting their profits to increase
Dan Dickinson, Partner and Practice Leader at Grant Thornton UK LLP in Yorkshire and the North East, said: "Beyond the numbers, what we're seeing across Yorkshire is the remarkable adaptability that makes our region such a vibrant business hub. Local business leaders are making tough but necessary decisions today that will protect their growth trajectory tomorrow.
"Yorkshire’s diverse economic landscape, from manufacturing and energy to tourism and services, gives our mid-sized firms a distinct advantage in terms of agility compared to larger corporations that may be more exposed to international volatility. Many companies in Yorkshire have already weathered challenging economic conditions and are now emerging stronger and more confident about future prospects.
"This positive sentiment isn't just reflected in spreadsheets – it's evident in conversations we're having with business leaders from Leeds to Sheffield who are actively investing in their future despite cost pressures. As we approach the Spring Statement, Yorkshire’s businesses will be watching closely, but the practical, can-do attitude demonstrated by our region's mid-market suggests they're well-positioned to navigate whatever challenges lie ahead."
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