Companies in Kirklees are broadly positive about their prospects – but remain concerned about access to finance and business rates, according to a survey.
The latest quarterly economic survey from the Lockwood-based Mid Yorkshire Chamber of Commerce said: “At the mid point of 2014, it is encouraging to note that our steady economic recovery has broadly been maintained.
“There are some clear headline positives in this survey – chief among them our continued export growth – alongside evidence of underlying weaknesses, in particular some erratic investment figures.
“As is often the case with our QES survey, optimism in some areas is counterbalanced by weaker figures elsewhere.
To some extent this is the nature of business and peaks and troughs are to be expected. However, this should be taken as a warning by policy makers. If consistent and sustainable growth is to be achieved, then the wider business environment must also be consistent.”
David Horsman, Yorkshire and Humber region chamber chairman, said: “The proposal for an ‘HS3’ to connect cities across the North has raised familiar arguments about the North-South divide and the relationship between our regions and the political classes in Westminster.
“While companies in the Yorkshire and Humber region are in broadly positive spirits at the mid-point of the year there is no doubt that recovery remains slower than had been anticipated and there is a risk that Britain will experience a ‘two speed’ recovery with the greater part of growth benefiting the South East.
“Businesses in our region would like to see real solutions to the issue of access to finance - and a comprehensive review of the whole system of business rates, so that we might create the best possible business environment to support speedy and sustainable economic growth.”
Among its findings, the survey of chamber member firms in Kirklees, Calderdale and Wakefield showed UK sales and orders “largely static” at the half-way mark in 2014 with export sales and orders encouragingly positive”. Employment and employment expectations continued to improve, but increased investment by firms had hit cashflow.
Business confidence remained high for the third quarter running, but raw material prices remained a key concern, particularly for manufacturers. Inflation and business rates were an ongoing issue for both service sector and manufacturing firms – and threatened to impact on manufacturing performance.
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