Fewer than 10% of South West firms have confidence in the 海角视频 economy, according to a new survey. Confidence in the nation鈥檚 economic prospects among businesses operating in the region has hit an 鈥渦nprecedented low鈥, amid rocketing energy costs and inflationary pressures.

The survey of 400 companies was conducted by Bristol-based chamber Business West before the government鈥檚 鈥渕ini-Budget鈥 in September.

While an Energy Bill Relief Scheme capping prices for firms between October and March has been announced, there was subsequent market turbulence after Chancellor Kwasi Kwarteng unveiled plans for the 海角视频鈥檚 biggest tax cuts in half a century.

Business West said only 9% of respondents were optimistic heading into winter - down from 32% in the first quarter of 2021, during the national COVID-19 lockdown.

The chamber also found business concern about inflation had reached a new record high of almost 75%, with rising utility costs and fuel prices cited for increasing prices.

Over half of the businesses surveyed said they expected to raise their prices during the fourth quarter of the current financial year.

Andy Dodd, the owner of Flipside Bar in Bristol said his business was becoming 鈥渦nviable鈥 due to the rising operating costs.

Stuart Dennis, director of Wiltshire-based BK Grain Handling Engineers, said: 鈥淐ontinually rising prices means that we have to pass on costs to customers, often after projects have commenced. This in turn leads to a breakdown in customer relations, something that our company has relied upon for a long while.鈥

Recruitment struggles were also reported, with half of respondents saying they had tried to add staff in the previous quarter with most facing difficulties.

Almost two-thirds of employers added that wage inflation was weighing on their margins, as they felt the pressure to increase prices because of labour costs.

Rachel Butler, owner of The Hearty Hare Caf茅 in Chippenham, said: 鈥淩ent, business rates and staff costs are increasing. We can鈥檛 charge our customers 拢6 for a coffee. It has become a juggling act and cutbacks have been made as much as possible.鈥

Matt Griffith, director of policy at Business West, added: 鈥淭he energy price intervention will have addressed some of our local firms鈥 most pressing concerns but worries about exchange rate volatility and broader 海角视频 economic health are growing, even before the full fallout from the market鈥檚 response to the government鈥檚 mini budget is felt.

鈥淥ur findings highlight the scale of the challenge in securing future business confidence over the coming year.鈥

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