Huge numbers of North East businesses are worried about inflation and rising energy costs as they try to bounce back from the pandemic, a new survey suggests.
The quarterly survey from the North East England Chamber of Commerce found that around 90% of respondents were worried about both inflation and energy prices, while concerns about staff costs and interest rates were also weighing on business owners.
The survey returned a number of positive findings, with more companies looking to hire permanent staff and sales, exports and investment indicators all in positive territory.
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But the rising numbers of businesses reporting concerns about a range of costs suggests that the much-publicised cost-of-living crisis is also becoming a cost-of-doing-business crisis for many firms.
Chamber president Lesley Moody said: “The results of this survey paint a clear picture of businesses doing their best to recover and grow in the face of continued difficult circumstances.
“A strong proportion of respondents had attempted to recruit into full-time, permanent positions in the last three months. But there is also a huge and growing concern about costs, with the top five perceived issues for businesses listed as inflation, energy prices, staff costs, interest rates and taxation
“The Chancellor’s Spring Statement failed to bring anything like the action required to head off these concerns, so our future remains uncertain. We can’t afford for this recovery and growth to taper off due to lack of support.
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“However, with the resilience and ingenuity of our region’s businesses, I have no doubt their ability will enable them to adapt and grow, whatever the prevailing economic weather.
“As we marked two years since the first national lockdown, we in the business community have had no time to pause for reflection. The pandemic challenges have given way to a cost of living and operating business crisis. We have also seen the impact of the start of the geopolitical and humanitarian crisis from Russia’s invasion of Ukraine.”
The findings in the Chamber’s survey mirror similar warnings from other business groups.
Last week, data from the British Chambers of Commerce claimed that inflationary pressures on firms have reached levels not seen in more than 30 years.
The Federation of Small Businesses, meanwhile, has warned over a “flashpoint” of cost pressures and new admin requirements, while the Institute of Directors has said that confidence among company directors has “dramatically collapsed” amid rising prices and expectations that inflation will continue to increase.
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