It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.
It has become something of a tradition, given that we’ve been doing this now for over 30 years.
Here we speak to Chris Hobson, director of policy and insight at East Midlands Chamber.
Uncertainty has been a constant theme over the past few years and it doesn’t look like disappearing from the menu for 2024.
Not only do many of the headwinds that have created challenges in recent times – ranging from cost pressures to skills shortages – endure, but the political climate at home also throws up more questions than answers with a General Election on the horizon.
In recent months, we have seen multiple policy “resets” as the UK gears up for heading to the polls within the next 12 months. This has involved a number of headline-grabbing policy announcements made arguably with more of an eye on positioning with the electorate, as opposed to meaningful growth strategies for UK plc.
Looking at historical trends via the Chamber’s State of the Economy Index, it’s not unusual to see things slow down ahead of an election. The concern is that while businesses have already proven their resilience by finding new ways to grow in the face of challenges, overall activity has slowed in the second half of the year as 14 consecutive base rate rises have taken their toll on sales, orders, recruitment, cashflow and investment intentions.
But one note of confidence – this time 12 months ago, many were predicting a recession in 2023 that never materialised. And when talking to individual businesses, the big picture trends we see are hiding many, many positive stories of growth and success.
In short, it is a real mixed bag out there and no-one should underestimate businesses’ ability to “get on with it,” even if all those around them have missed the memo.
