Businesses across the Liverpool City Region are delaying investment and recruitment plans amid growing economic uncertainty, according to new data from the British Chambers of Commerce (BCC). Tony McDonough reports
The latest Quarterly Economic Survey (QES) – the UK’s largest independent business survey – reveals that local firms are increasingly concerned about taxation (62%) and inflation (54%).
Nearly half (45%) expect to raise prices in the coming months, driven by rising employment costs (90%), utility bills (59%), and raw materials (41%).
While 81% of respondents expect turnover to hold steady or improve over the next year, almost a third (31%) anticipate a decline in profitability. More than half (52%) say their business is running below full capacity, and 46% report falling cashflow, with investment in technology and equipment taking the hardest hit.
Export performance remains weak, with 46% of firms reporting fewer overseas orders and 42% seeing export sales fall. By contrast, domestic trade is more resilient — fewer than a quarter of businesses report a drop in UK sales or orders.
On employment, 60% of businesses expect no change in staffing levels, while 13% foresee reductions. Recruitment challenges persist, with 70% of firms struggling to fill vacancies — particularly in skilled or manual roles (55%).
READ MORE: Housing associations can make New Town a reality
READ MORE: 231-year old Liverpool business returns to profit
Paul Cherpeau, chief executive of Liverpool Chamber, said: “This survey underlines the frustrating reality that many businesses find themselves in a state of paralysis, unable or unwilling to move ahead with growth or investment decisions, understandably concerned about the impact of UK government policy around business taxation and the National Minimum Wage, as well as global factors such as tariffs and conflict.
“The impact of this trading environment can be seen bleeding through into the city region and UK economy, with stagnant GDP growth and lower productivity, while the looming threat of a Budget in November only serves to heighten tensions.
“We urge the government to reassure businesses by bringing forward a sustainable and deliverable long-term plan for economic growth that doesn’t involve any further tax raids on business owners and employers.”
That uncertainty was reflected in some of the narrative responses to the survey.
One business owner said: “We are having lots of sleepless nights. Since the tax and NI changes kicked in in April 2025, the trading environment has become increasingly difficult.
“Pre-April, with the work we had planned with clients for the rest of the year, we had a projected 60-75% increase in turnover by our year-end in October.
“However, a combination of increased costs and overheads, and clients cutting non-essential aspects of planned projects due to their own increased costs and overheads, means we will end this year with less turnover than last and in deficit. It is only through very savvy decisions and budgeting that the business is still operating.”
Local survey data was collected by the Chambers of Commerce in Knowsley, Halton and Liverpool, reflecting the views of businesses across the Liverpool City Region.