State of the Region – has downturn knocked business confidence?

BUSINESS leaders across TheBusinessDesk.com’s three commercial heartlands were united 12 months ago in their belief that confidence levels were set to rise in 2011.

But has that prediction become reality over the course of a year of major economic uncertainty both at home and abroad?

Take TheBusinessDesk.com’s State of the Region survey and help paint a true picture of the business and economic landscape in what has been a landmark year.

[FORM: 53]

TheBusinessDesk.com is delighted to be running this milestone project in association with our lead sponsor, law firm DLA Piper, and which is also supported by accountancy group PwC and the CBI.

Readers who took part in last year’s major online survey, which gave a comprehensive view of business sentiment across Yorkshire, the North West and West Midlands, agreed on many issues but differed on what areas needed to be addressed to further drive growth in their respective regions.

The majority of respondents said the targeting of new UK markets was a key business objective but with the Coalition Government looking for international trade and exporting to accelerate the recovery it will be interesting to discover if that sentiment has changed.

Pressure on pricing, increased competition and the impact of public sector spending cuts were also seen as major challenges 12 months ago.

Readers from our three regions agreed that improvements to transport and infrastructure were crucial in their respective areas in order to drive growth and this year’s survey asks if that position has changed.

Richard May (pictured left), managing partner of DLA Piper’s Sheffield office, said: “In last year’s survey, 43% of respondents in Yorkshire felt that the Coalition government would have a positive effect on the region, predicting that the greatest challenges in 2011 would be the impact of public sector spending cuts followed by a lack of private investment.

“The results of this year’s survey will show the extent to which businesses feel these fears have been realised. The 2011 budget contained some business friendly policies such as the reduction in corporation tax rates, changes to the foreign companies’ regime and measures to support enterprise and innovation.

“However, many businesses will have been effected by further spending cuts and uncertainty over the second round of quantitative easing.

“At a purely regional level, confidence was high last year with 97% of respondents stating that the region is still a good place to do business. After another difficult year in the economy, with the disbandment of the regional development agencies and the establishment of the new LEP boards, this survey will help to gauge how successfully businesses feel that Yorkshire has adapted to the challenging economic climate.”

Gordon Singer, tax partner at PwC in Leeds, said that in order for companies to export successfully and drive growth, access to funding is critical.

Mr Singer said: “Access to credit has remained a significant concern for businesses during 2011 and, as we look forward to the year ahead, it is hoped that the Government’s proposals to introduce a credit-easing scheme will help to alleviate some of the pressures on businesses and help to ensure that funds flow to those that need them most.

“Funding is crucial to support businesses and to help them to stay focused on growth and innovation.”

[FORM: 53]