The British Chambers of Commerce’s Quarterly Economic Survey – the UK’s largest and longest-running independent business survey – shows a small rise in business confidence in the final quarter of 2023. The percentage of firms expecting an increase in turnover over the next year (56%) has risen to the highest level since Q1 2022 when Covid restrictions were lifted.
The data also reveals that more firms expect price hikes, ending the downward trend of the last two years.
The survey, conducted in November, of over 5,000 firms across the UK – 91% of whom are SMEs (fewer than 250 employees) – also reveals business performance across different sectors varies considerably.
Senior Account Manager Tim Major sat down with Stuart Morrison, Research Manager at the BCC and Rosalind Payne and Carole Le Page from BDO UK LLP, who sponsor the Thames Valley report, to discuss the findings from a national and regional viewpoint. Find out what the results mean for Thames Valley businesses and what the next 3 months have in store here
You can read the Thames Valley report here
In the Thames Valley region, there has been a slight decline in UK sales, with 16% of businesses reporting a decrease in the quarter and only 45% reporting an increase. This compares to 10% and 50% respectively in Q3, although there was a notable surge in UK sales evident in that quarter, and the Q4 data suggests this has now stabilised, with the position broadly in line with Q4 2022.
Despite fluctuations in sales and orders, most companies (93%) have had a consistent or increased workforce over the past quarter and the majority expect their workforce to remain stable in the next three months. Notably, there has been an increase in part-time and temporary roles, showcasing a trend toward greater flexibility from employers.
The challenge in recruitment continues and now extends across all sectors, including, skilled manual/technical, professional/managerial, clerical, and semi/unskilled positions. But the recruitment struggle is particularly pronounced in professional/managerial roles (with 53% reporting difficulties recruiting in that sector), though there has been a 10% improvement from the same quarter last year.
Paul Britton, CEO, Thames Valley Chamber of Commerce said “The message that we are hearing across the Thames Valley is that businesses yearn for a comprehensive, long term growth strategy from the government and Chambers are taking every opportunity locally and nationally to ensure that message is heard.
“The Chancellor’s recent decision to permanently institute full expensing in the Autumn Statement was welcome. However, 2024 demands further measures to support companies, and this will be our call to action for the Chancellor in the run up to the Spring Budget on March 6th, to support local business and in their investment endeavours”.
