Hull & Humber Chamber of Commerce on the struggle to recover confidence
Dr Ian Kelly, chief executive of Hull and Humber Chamber of Commerce(Image: Peter Harbour)
The last quarter of 2025 did little to restore business confidence in the Humber, with tax increases being the biggest concern for firms, according to Hull & Humber Chamber of Commerce.
Hot on the heels of tax fears, companies were also fretting about pay settlements with an increase in the minimum wage looming in April and despite the Budget not being as bad as many had feared, there were few bright spots in the last quarter’s results, the Chamber’s Quarterly Economic Survey (QES) revealed. The only positive area was the Home Sales sector, possibly with early Christmas shoppers getting themselves organised ahead of the festive season.
While that sector saw its balance figure improve, it remained in negative territory. Export Sales were also in the doldrums and Export Orders were doing even worse, the survey showed.
Dr Ian Kelly, Hull & Humber Chamber chief executive, said: “Our survey shows another tough quarter for businesses as economic conditions continue to challenge the best of them. As we start 2026, we can only hope that December’s cut in interest rates and renewed optimism of a new year and little less uncertainty around Government policy will restore a degree of business confidence in the Humber.
“If the Government can demonstrate that its plans are starting to work and there is to be a period of stability, then this year might be a better one for business than 2025 turned out to be.” Shevaun Haviland, director general of the British Chambers of Commerce, said: “Our data shows more clouds have gathered over business confidence, and the outlook for SMEs in 2026 is unsettled.
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“Firms tell us they are worried about tax, struggling to invest and fear they’ll have to put their prices up in the months ahead. Firms’ confidence in their turnover growth has been stuck stubbornly below 50 per cent for the last 12 months.
“After a long period of uncertainty and speculation heading into the Budget, concerns about major new tax rises eased somewhat in the aftermath. However, a Budget fundamentally light on growth measures did little to boost business confidence, and sentiment overall has worsened since the previous quarter.
“It is now critical that 2026 is a year of delivery. The Government needs to turn last year’s strategies into action; boost investment, significantly expand trade, and ease the myriad burdens facing businesses. Only then will the economic outlook shift from its current low-growth trajectory.”