CEO of Liverpool Chamber Paul Cherpeau reveals ‘substantial and damaging short-term issues’ facing businesses across the city region. Tony McDonough reports

Business confidence in Liverpool city region has deteriorated since October, according to localised results of the British Chambers of Commerce’s Quarterly Economic Survey.

Mirroring national trends, members within Liverpool Chamber’s network identified tax and national insurance changes as the main inhibitors of confidence and performance.

In a marked contrast to the previous quarter’s results, turnover and profitability expectations of Liverpool Chamber member businesses plummeted from a five-year high to levels matching the aftermath of the 2022 ‘mini-budget’.

Just 54% of respondents now expect their turnover to increase in the next 12 months (down from 77%) and only 36% forecasting their profitability to increase over the same period (down from 64%).

Liverpool Chamber chief executive Paul Cherpeau, said: “The results of the Quarterly Economic Survey reflect the economic challenges that are prevalent in both the Liverpool City Region and more broadly across the United Kingdom.

“While the national government seeks to create a long-term plan for sustainable business growth, it’s clear this will offer little respite to the substantial and damaging short-term issues facing businesses today.

“Understandably, confidence among business leaders has been negatively impacted and we are seeing that through the lived experiences of those responding to the survey and the rhetorical experiences of many businesses we speak with.” 

Chamber businesses also reported reductions in domestic sales, orders, cashflow and investment intentions, indicative of a challenging trading period and largely reflective of a broader national picture.

Almost 60% of Liverpool Chamber business leaders expect to increase the price of their products and services in the coming three months, with zero respondents anticipating reductions. Labour costs account for the vast majority of the cost pressures.

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Adding a slightly more optimistic note, Paul added: “We also know that many are absolutely committed to working through the short-term challenges to create strong, purposeful businesses that can compete in national and international markets.

“They also recognise the opportunities for Liverpool city region to capitalise upon the creation of further devolved powers and create conditions for economic growth and prosperity. This includes development of a local talent pipeline.”