In tough economic times, business leaders in north-west England are cautiously hopeful. Yet, many are eager for more support to help them flourish.
Last year, the UK saw unexpected growth. This prompted the Bank of England to cut its growth forecast for 2025, leaving economists feeling uncertain about the future.
Despite these challenges, Sean Keyes, managing director of Sutcliffe, a Liverpool-based engineering consultancy, sees reasons for optimism. He says, “We’re like a microcosm of the wider economy.” While housing development is slow, there’s more activity in public sector projects like prisons and healthcare.
He believes the modest growth is a good sign, even if it feels minimal. Sutcliffe’s team of 65 in Liverpool and Manchester has managed to outperform the national average by “working a little bit harder and a little bit smarter.” They’ve secured projects across the country, including a housing scheme in Bristol.
Further up the M62, Chris Taylor, who owns a coffee shop in Manchester, reported that business is slow. He notices people are hesitant to spend as they tighten their budgets. Similarly, caterer Sushma Solanki mentioned that she only handled two office Christmas events this year compared to 20 to 30 in previous years. Rising food costs and the increase in National Insurance led her to let go of an employee.
Samantha Barker from the Liverpool Chamber of Commerce pointed out that worries about taxes and National Insurance are still widespread. Professor Miranda Barker from East Lancashire echoed this, emphasizing that low-paid sectors like hospitality and care are struggling. “We’re seeing redundancies not due to a lack of work, but to cover rising costs,” she said.
Interestingly, the East Lancashire Chamber of Commerce noted that manufacturing firms are doing well with full order books. However, increased taxation has eaten into their profits, causing challenges.
In Wirral, Matt Breakwell from a heating and electrics firm remarked that about 600 projects are currently stalled due to planning issues. Though last year was tough, he sees a rise in inquiries and orders. He called for certainty, particularly around plans to decarbonize the UK by 2050.
As the government plans for their Spring Budget, Subrahmaniam Krishnan-Harihara from the Greater Manchester Chamber of Commerce cautions against overstating the fragile growth. He insists that now is not the time to add more financial burdens on businesses. “Investment can only thrive if businesses feel supported in a stable economic climate,” he emphasized.
Professor Barker added that businesses need the promised investments to help them grow. She hopes for collaborative efforts to support local firms and boost their development.
