Economic uncertainty and questions over a proposed Lancashire devolution deal were in the spotlight at the Lancashire Economic Breakfast.
Scores of decision-makers from across the county were given fresh data about the state of the local economy following the announcement of national insurance hikes in last autumn’s Budget.
Chamber members quizzed a panel of experts chosen by sponsors, purpose-led independent law firm Brabners, during the event at The Mill at St Catherine’s Hospice in Preston.
The latest Quarterly Economic Survey (QES), conducted by the North & Western Lancashire Chamber of Commerce, reveals a bleak outlook for the county’s business community as confidence continues to fall, driven by rising costs and uncertainty about the future.
One of the key challenges identified by businesses in the survey is the recent rise in National Insurance contributions introduced by the government. Many companies report that these additional costs are directly impacting their ability to recruit and retain staff. This is compounded by ongoing recruitment difficulties, as employers struggle to attract the skills they need to grow and compete.
Investment plans have also taken a significant hit. Businesses are tightening their belts, with many postponing or cancelling projects as fears grow over economic stagnation in 2025. Rising energy costs, inflation, and a lack of clarity on government policy have all been cited as factors eroding confidence.
However, the expert panel of decision-makers from across Lancashire offered a balanced view, highlighting the resilience of the business community and discussing positive longer-term trends reflected in the report, such as business investment in areas including digital infrastructure as well as the opportunities offered by Lancashire’s devolution journey.
Brabners, which sponsored both the survey and the Lancashire Economic Breakfast, has over 520 staff across four offices in the North of England. Its True North network, of over 350 organisations committed to supporting the North’s future – was established to unite the region’s most influential and purpose-driven voices to unlock the potential of the Northern economy.
Speaking about the survey’s results, Robert White, CEO, Brabners said: “The increased costs to businesses announced in the budget were bound to affect business confidence, and this is evident in the Lancashire business community’s responses to this quarter’s survey.
“As we know, business confidence drives investment and both fuel the economic growth we are all seeking. While the business community is generally willing to endure short-term challenges for long-term benefits, we are yet to see a clear plan for achieving this growth.
“Policymakers, both nationally and locally, must engage with the purpose-led business community on the development of such a plan. Brabners and our True North network remains ready, willing and able to play our part.”
Babs Murphy, Chief Executive of the North & Western Lancashire Chamber of Commerce, commented: “The results of this survey are deeply concerning and show the strain businesses in Lancashire are under. The combination of increased National Insurance costs and ongoing recruitment challenges is creating an environment where businesses feel unable to invest in their future.”
“Without decisive action to support businesses, the county risks seeing stalled growth and lost opportunities for innovation and job creation. The government must listen to the voice of business and provide targeted relief to address these pressing issues.”
The Chamber is calling for urgent measures to support businesses, including a review of the National Insurance increases, initiatives to address the skills shortage, and further clarity on economic policy to restore confidence and encourage investment.
View the report here QES Q4 report
