Firms confident on growth despite inflation and tax worries
The majority of private firms in the East of England (93 per cent) feel confident about their growth prospects – up from 89pc at the start of the year – but inflation and potential tax rises in the autumn are a concern, according to a mid-year ‘private enterprise barometer’ survey from KPMG. It says diversification is a priority in the region with nearly three quarters of firms focusing on expansion of service. Most are looking to target new markets and technology is the investment priority in the region. Areas such as AI, cyber security and digital transformation are seen as key focuses. Joe Faulkner, Cambridge and Norwich office senior partner at KPMG UK, said: “The East of England’s private business community continues to show impressive resilience and determination, with confidence building even in the face of ongoing economic challenges. While the business environment is clearly challenging it is great to see such confidence across the individual leaders of our private companies in the region.” The survey also showed that more than a third of East of England regional businesses are now open to private equity investment.
Separately, mid-sized businesses in East Anglia are seeing stronger-than-expected performance in 2025, fuelled by greater access to finance and AI adoption, according an economic engine survey from BDO. It shows three-fifths have already beaten growth targets set at the start of the year, with one in ten having ‘significantly exceeded expectations’.
Hiring plans boosted by upturn in business optimism
More firms are planning to hire staff over the next year after business confidence in the East of England rose by 14 points during August to 64 per cent, according to a business barometer survey from Lloyds. Companies in the East reported higher confidence in their own business prospects month-on-month, up 19 points at 68 pc, along with more optimism on the economy. A net balance of 56 pc of businesses in the region also expect to increase staff levels over the next year, up 21 points on July. Kirsty Sadler, regional director for the East of England at Lloyds, said: “It’s encouraging to see such a rise in confidence from East of England firms this month, and for so many businesses to be planning to hire. Local firms remain focused on growth and are pursuing ambitious plans.”
Hann-Ju Ho, senior economist at the bank, added: “Wage expectations have seen a notable shift this month, but it remains to be seen whether this signals the start of a sustained trend or a temporary uplift, as they have been broadly stable in recent months.” Nationally, UK business confidence rose two points in August to 54pc.
Materials group makes £3.5m upgrade to Norfolk plant
Building materials group Breedon has completed a wide-ranging modernisation programme on its Longwater Asphalt Plant near Norwich. The project will support the business’ expanding role in major upcoming road and infrastructure projects around East Anglia. The plant is now able to hold up to 360 tonnes of asphalt, as well as the potential to store more recycled asphalt planings. Significant upgrades were carried out on four of Longwater’s five main components. They included a new wax feed system, a four-tonne capacity weight module and the modernisation of the system software. Colin Parke, managing director – aggregates, asphalt and ready-mix concrete at Breedon, said: “The refurbishment improves how we produce and deliver high-quality products more sustainably, allowing us to both reach our customers more efficiently and play our part in supporting major road projects across the region.”
Fewer directors ‘choosing to close companies voluntarily’
A levelling out of the monthly number of corporate insolvencies in England and Wales is lending weight to signs that the economy is showing ‘tentative signs of recovery’, according to the Eastern branch of R3. Insolvency Service figures show that corporate insolvencies increased only marginally by 1.4 pc in July to 2,081 compared to the previous month, and rose by only 0.1pc against July last year. R3 Eastern chair Hayley Watson (photo, right), a director at McTear Williams & Wood in Norwich, said: “Corporate insolvencies remained broadly stable last month, with the trends showing a rise in compulsory liquidations and a slight uptick in administrations, while creditors’ voluntary liquidations and company voluntary arrangements fell.” She added: “This pattern may suggest that fewer directors are choosing to close their companies voluntarily, whether because they are seeing improvements in trading conditions or they are caught in a holding pattern, waiting to see where the economy may next head.”
Initiative launched to help SMEs boost cybersecurity
An initiative to help local businesses in the East improve their cybersecurity defences and look at the scope for AI in digital risk management is being launched by Freeport East and the University of Essex. The Cyber Innovate to Elevate programme is set to launch in September and the six-month programme will support 10 to 15 SMEs across northern Essex and south-east Suffolk to develop practical, scalable cybersecurity solutions tailored to their needs.
Farmers and landowners urged to explore biodiversity opportunities
Farmers and landowners across East Anglia are being urged to make the most of revenue opportunities from the expanding biodiversity market. New rules mean developers are required to replace habitats lost during building projects – plus a net gain of at least 10 per cent. It can be done by ringfencing wildlife areas or by paying other landowners to create equal off-site biodiversity net gain units for them nearby. A report from Savills – Biodiversity: risk, reward, resilience – explores the opportunities at a time when farm profits are under pressure. Joshua Spink, associate director for Savills in Norfolk and Suffolk, said: “The BNG market is expected to expand significantly over the next decade as more developers seek ways to meet their legal obligations under new planning and environment policies. As demand grows there are opportunities for farmers and land managers to create new revenue streams by providing habitat creation or enhancement services – an area that we are already exploring with several clients.”
MP visits ground-breaking almshouse development
Ian Sollom, MP for St Neots and Mid Cambs, last week visited Girton Town Charity’s Dovehouse Court development, a recent winner of a RIBA East Award for its design and futureproofing technology. Dovehouse Court is the first almshouse development in the country to fully conform to Passivhaus standards and has been recognised with national awards for its energy efficiency and design involving a central courtyard to encourage social interaction. A tour of the development hosted by GTC chair Ann Bonnett and representatives of RIBA and designers Mole Architects included a visit to one of the homes. Ian Sollom said: “What struck me most about my visit was hearing about and meeting residents who are genuinely thriving in their new homes. This isn’t just about creating energy-efficient housing – it’s about creating a space in the community where people can live with dignity and independence.”
Photo (l-r): Mark Vile, Dovehouse Court resident; Ann Bonnett, chair Girton Town Charity; Ian Bramwell, director Mole Architects; Ian Sollom MP; Matt Blakeley, regional director RIBA Central.
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