North West Businesses amongst most Confident in UK about Economic Recovery
- Employment Law
- 3rd Sep 2021
A survey of British business confidence has highlighted an optimistic attitude, predicting a strong economic recovery to pre-pandemic levels, most notably amongst businesses in the North West. The monthly survey of 1,200 firms was conducted between 2 and 16 August, with employers in England's North West and East reporting the biggest increases in confidence.
By Stephen Attree
MLP Law
A survey of British business confidence has highlighted an optimistic attitude, predicting a strong economic recovery to pre-pandemic levels, most notably amongst businesses in the North West.
The monthly survey of 1,200 firms was conducted between 2 and 16 August, with employers in England’s North West and East reporting the biggest increases in confidence.
Some businesses displayed caution, however, with reference to inflation and staff shortages – an issue we have previously covered here. Indeed, with uncertainty over the level of inflation and the impact of price pressures, some companies are still wary of what may lie ahead. Nonetheless, firms in manufacturing, services and construction were particularly positive that recovery would continue.
The newly discovered confidence was largely driven by improvements in companies’ trading prospects and expectations of stronger growth in the year ahead, with particular emphasis on continued success of the vaccine rollout, the removal of lockdown restrictions and adjustments to self-isolation rules. Moreover, these factors have combined to allow staff to return to their physical places of work in increasing numbers, which has provided a greater sense of normality and stability – please click here, here and here for our previous blogs on “Freedom Day” – with guidance for employers as workers return to their physical workplaces.
A regional breakdown outlined that confidence had increased in nine out of the 12 UK regions and nations in August with particularly strong rises in the North West, up 26 points to 64% and the East of England, showing a rise of 14 points to 39%.
Similar positive data has also been issued by the Office for National Statistics, which suggested that the labour market continues to “rebound robustly”.
Wider economic conditions have also been improved as government borrowing falls, in line with the winding down of furlough support, coupled with tax receipt rises.
If you have any questions please contact the MLP Law Employment team at employment@mlplaw.co.uk or 0161 926 9969. Please also keep an eye out on our Twitter feed @HRHeroUK and for our regular blogs on all things Employment Law and HR.
About the expert
Stephen Attree
Managing Partner
Stephen is the Owner of MLP Law and leads our Commercial, IP and Dispute Resolution teams which provide advice on all aspects of the law relating to mergers, acquisitions, financing, re-structuring, complex commercial contracts, standard trading terms, share options, shareholder and partnership agreements, commercial dispute resolution, joint venture and partnering arrangements, IT and Technology law, Intellectual Property, EU and competition law, Brexit and GDPR.
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