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North East entrepreneurs reject Chancellor’s budget

The latest Entrepreneurs’ Forum pulse survey has revealed a 23 per cent drop in business confidence, attributed to a rejection of the new Chancellor’s budget.

Of the 111 business owners who responded to the latest survey (approximately one third of the Forum’s overall membership), only 66 per cent expressed confidence in their own business prospects, marking the first time confidence has dipped below 80 per cent since the Forum’s member surveys began.   

Open from Thursday 14 to Friday 29 November 2024, the survey occurred two weeks after the new Chancellor revealed her budget and several responses are influenced by this context. An overwhelming 77 per cent of respondents disagree that the Budget will help entrepreneurs to grow the UK economy, with the majority (57 per cent) saying it will have a negative impact on their own business prospects over the next 12 months. 

Whilst 59 per cent of entrepreneurs still anticipate achieving top-line revenue growth, the percentage expecting growth of more than 20 per cent has halved. Furthermore, over a third (39 per cent) now predict no growth or a decline in turnover over the coming 12 months, compared to only 16 per cent in the Forum's last quarterly research.  

Employment is being scaled back too, with only seven per cent reporting plans to increase headcount by more than 20 per cent. This is down from 23 per cent last quarter. Worryingly, 14 per cent now plan to reduce their staff numbers in the next 12 months. 

Whilst resigned to higher businesses taxes, several respondents acknowledged the commitment to a stable corporation tax rate, tax relief on capital spend and tax relief on innovation which allow for business decision making and planning. 

Elaine Stroud, CEO of the Entrepreneurs’ Forum, commented: “The results of our research are a real concern, particularly the downgrading of financial forecasts for the coming year. However, if I can take any positivity from these results, I would highlight that the uncertainty of previous quarters has been lifted allowing entrepreneurs to make informed decisions and forge ahead as we enter 2025.”

The Entrepreneurs’ Forum was founded in 2002 and represents over 340 North East entrepreneurs with a collective turnover of £2.25 billion per annum.

Its partners include Agilico, Blu Sky, Hilton Newcastle Gateshead, LDC, Northumbria University, RBC Brewin Dolphin, Ward Hadaway, White Digital and North East Times.

This was posted in Bdaily's Members' News section by Entrepreneurs' Forum .