Job-shedding slows as cost pressures ease on firms
Employment at private firms fell at the slowest rate in nearly a year in the region in September as cost pressures eased, according to a key survey of purchasing managers. It showed that staff retention across private firms was at a ten month high, as the East was one of only three UK regions to record higher new work. The NatWest East of England growth tracker business activity index slipped to 51.3 in September, down from 54.6 in August, signalling a continuing growth in new business, albeit the weakest rate of expansion in the current five-month upturn. Average input costs rose at the slowest rate in 2025 so far and firms raised their own prices at a weaker rate. But inflationary pressures remained above the long-run survey average. Lisa Phillips, regional managing director, Midlands and East, commercial mid markets, said: “The East of England held on to second place in the UK growth rankings in September and has been ranked either first or second among the 12 UK nations and regions since May. Although new business growth eased since August, it was one of only three UK areas to record any increase at all, alongside London and the South East. Another positive from the latest survey was a sign of recovery in the labour market as employment fell at the slowest rate since November 2024.”
Sharp upturn in business start-ups but firms urged to stay cautious
Business start-ups in East Anglia rose sharply in September and insolvency activity slowed but business owners should remain cautious over coming months, says the Eastern branch of insolvency trade body R3. There were 8,363 businesses set up in East Anglia in September, a 17 per cent rise on August and the highest number for any region in the UK outside London. R3’s analysis also shows a decrease in insolvency-related activity across East Anglia in September, with fewer liquidator and administrator appointments as well as creditors’ meetings. R3 Eastern chair Hayley Watson (right), a director at FRP Advisory in the region, said: “It’s good to see the entrepreneurial appetite building back up again, but we should remain cautious as the business economy continues to be hugely challenging and unpredictable. Construction is struggling, with housebuilding slowing and smaller contractors reporting quieter pipelines….Retail and hospitality are also facing difficulties, with high staff costs and subdued consumer confidence. A further update on transforming business rates is expected in the November Budget, but meaningful change is needed swiftly for our struggling regional sectors.”
Small firms urged to speak out on late payments
Ipswich MP Jack Abbott is encouraging local business owners to share their experiences on late payments as the government consults on new plans to make small firms get paid on time and treated fairly by larger companies. Mr Abbott, Labour member for the Suffolk county town, said: “Every year, a huge number businesses go under because customers, often much larger companies, fail to pay for goods or services promptly. It’s unfair, it’s damaging to our town, and it has to stop.” He added: “I want to see tough new laws to make sure invoices are paid quickly and persistent late payers face real consequences. The Labour government is consulting on plans to tackle this problem head-on, and I’m urging any Ipswich businessperson who’s been affected by late payments to take part and make their voice heard.” The consultation can be seen here .
Housebuilder puts forward plans for 135 new homes with employment land in Suffolk town
Housebuilder Bellway has applied for planning permission to develop a 32-acre site in Framlingham in Suffolk with 135 new homes and 7,000 sqm of employment space. The scheme includes 44 affordable homes, and outline permission for a further seven self-build/custom-build homes, land for employment, a convenience store and an ‘early years facility.’ The homes would all feature air source heat pumps, solar panels and EV charging points, along with biodiversity measures. Ben Stacey, strategic land director for Bellway in the South East, said: “Following extensive public consultation, we have submitted an application that caters to what people need and want in Framlingham…This level of employment land could support around 600 jobs and by creating workspace near the homes we are further increasing the sustainability of the development because it will put many residents within easy reach of work without the need for a long commute.”
Farmland values ‘softening’ amidst uncertainty ahead of Autumn Budget
The farmland market is proving ‘highly variable’ with some exceptional prices still being paid for land, but average values are ‘softening’. Strutt & Parker’s farmland database shows the average price of arable land in the first nine months of the year was £10,400/acre, eight per cent down on 2024 and the average price of pasture land was £8,500/acre, down seven pc the previous year. Sam Holt, head of estates & farm agency for Strutt & Parker, said: “Despite surveys showing farmer confidence is low, we have not seen this result in an increase in supply of farms to the market and we anticipate the rest of the year will be quiet in terms of new launches. As is typical in times of uncertainty, many landowners are taking a ‘wait and see’ approach. We know of several vendors who were preparing to sell this autumn but have delayed until early 2026, preferring to first find out what the Autumn Budget may bring.”
Innovation clusters sustain the East as a ‘leading finance hub’
The East of England performs as a leading finance hub largely due to its thriving innovation clusters and proximity to investors, according to the British Business Bank’s annual Nations and Regions Tracker. In 2024, Cambridge & Peterborough outperformed all other mayoral areas outside London in the value of equity investment (worth £748 million) flowing to local businesses. Alongside Greater Manchester, it also had the largest deal count (82). Smaller businesses in the East of England recorded the second highest increase in the use of external finance, up three pc to 44 pc. Under its debt and equity finance programmes, the government-backed bank has delivered £500 million to the East through its ENABLE scheme and £200 million to the region through its Growth Guarantee Scheme. Steve Conibear, UK network director, East of England, for the bank, said: “In the face of a challenging economic environment, the East of England remains a key financial hub for the UK. It is encouraging that this year’s Nations and Regions Tracker showed that external finance use increased in the East of England last year, owing to the continued supremacy of Cambridge & Peterborough’s university spinouts.”
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SMEs offered free cybersecurity training
SMEs in the region are being offered free cybersecurity training to boost their resilience against emerging AI-powered threats. Led by specialists from Anglia Ruskin University, the support is being delivered through the government-funded Cyber Local programme. A government survey showed that shows that 43 pc of UK businesses had a cybersecurity breach or attack in the previous 12 months. Dr Erika Sanchez-Velazquez, deputy head of ARU’s school of information science & security, said: “Cybercriminals are using AI to automate attacks, create deepfakes and exploit vulnerabilities at an unprecedented rate. At the same time, AI can also be used to help SMEs defend themselves, with automated threat detection, faster responses and more resilient systems.”
Conference and events bureau shortlisted for excellence awards
Meet Cambridge, the official conference and events bureau for the city, has been named as a finalist for two entries at The Association of British Professional Conference Organisers Excellence awards which recognise best practice in association and not-for-profit conferences and events. Despite a 20 per cent rise in entries this year, Meet Cambridge has been recognised twice in the Best Partnership category, for its collaboration with Opening Doors & Venues and for its involvement in the Neurodiversity in Events initiative. Andrew Bell, head of Meet Cambridge, said “We’re absolutely delighted to be recognised twice in the Best Partnership category. Opening Doors & Venues has been a trusted partner for many years, and this recognition is a testament to the strength of collaboration between two Cambridge-based companies working together on the global stage.”
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