North West business confidence tapers off

Confidence in the North West region tapering off, to the extent that it is now rising at the slowest pace of all the English regions according to new research in the FSB’s ‘Voice of Small Business’ Index (SBI) survey.

The latest SBI results highlight while the business environment is improving in the NW region, with confidence levels well up in Q2 of 2014 from the same period last year, the figures remain below the Index levels seen around the rest of the country’s regions.

According to the data, the North West has slipped further behind other parts of the UK, with only Wales faring worse.

The study, which polled almost 2,500 members nationally, suggests that for a long term recovery that is balanced between the South and the rest of the UK, a sustained uptick in business confidence in the North will be needed.

However, with regions in the North of England being disproportionately affected by further government cutbacks in the coming years that might be unlikely.

FSB regional chairman for Manchester and North Cheshire, Richard Gregg, said: “While it is encouraging business confidence in places such as Greater Manchester has grown significantly, it is clearly of concern that other English regions are more upbeat, such as in the North East where there seems to be a much more positive outlook.

“It could be that this is just a blip, so it will be interesting to see what the next SBI survey turns up. It would be concerning if this trend were to continue.”

He added: “All that said, the wider SBI research certainly paints a more rosy picture of the business scene, with the proportion of firms expecting to grow during the next twelve months standing at 61%, with 11% of those expecting to do so rapidly.

“And for the first time in our SBI survey’s history, credit has been reported as unaffordable by fewer than half (47%) of firms. While the figure is still too high, that’s a huge improvement compared to a year ago, which suggests the banks themselves may be starting to see sense.”