Stronger customer demand gives a boost to business confidence
Business confidence in the East of England rose sharply in May helped by stronger customer demand and prompting more firms to plan to increase recruitment, according to a business barometer survey from Lloyds. It showed companies in the East were more optimistic on their own trading outlook (up six points at 57 pc) and on the economy (up 17 points to 51pc). This meant businesses in East were among the most positive of any UK region – see visual right – with an overall headline confidence reading of 54pc. The survey also showed that approaching half , 44pc of businesses in the region expect to increase staffing levels over the next year, up 17 points on the previous month. Kirsty Sadler, regional director for the East of England at Lloyds, said: “It’s great that businesses in the East of England are preparing for summer with rising confidence levels. As we head into what will be a peak season for many of our region’s firms, it’s encouraging that many are seeing strong demand for both their own services and the wider market….We’re already seeing on the ground the impact this increased confidence can have.” The top target areas for growth in the region are new tech such as AI or automation, team investment such as training and new markets. Overall, UK business confidence rose three points in May to 47pc.
Tourism businesses stay resilient in face of ‘slow squeeze’
Tourism, leisure and hospitality businesses in the region are growing turnover but are facing a “slow squeeze” in trading conditions with margins under pressure from rising costs according to the Tourism Business Survey 2026 from advisers Larking Gowen. It says businesses in the sector are now operating under structural pressure rather than short term disruption, where ‘resilience is maintained through endurance’. Around 60 per cent of respondents to the survey across Norfolk, Suffolk and Essex, reported increased turnover in 2025. But margins are being eroded, with 40 per cent expecting lower profitability as rising employment costs, tax, business rates and regulatory change take their toll. Chris Scargill, tourism, leisure and hospitality partner at Larking Gowen, said: “Tourism businesses in East Anglia are still trading, still investing and still delivering exceptional experiences, but the nature of resilience has changed. This is no longer about bouncing back from a single shock. It’s about absorbing a permanent reset in costs, policy pressure and customer behaviour. Hospitality is resilient, but it is not invincible. Without greater stability, clarity and proportionate policy, even well-run businesses will struggle to sustain themselves long term.” Around 43 per cent of businesses in the sector expect increased profits in 2026, albeit modest and nearly half are increasing spend on marketing, technology and customer experience.
Iain Wilson, owner of Byfords, The Pigs and Norfolk hospitality businesses, said: “If you’re not reinvesting, you’re going backwards. Costs have reset permanently and busy no longer means profitable. People may go out less often, but when they do, they want something memorable. That means being absolutely clear about who you’re for, investing in experience and having the courage to stop doing what no longer works.”
Photo: From left, back, Jamie Steel, LG assistant manager; Chris Scragill, LG partner; and Charlie Hodson, Hospitality Action. Front, Dannielle Chapman, LG senior partner; Jo Burton, LG director; Cassie Davison, Kith and Kin Hospitality; Ben Marshall, Pensthorpe; and David Scott, Hotel Folk.
North Norfolk boutique hotel acquired by Welsh hospitality company
A north Norfolk boutique hotel, The Harper in Langham, has been acquired by the Morgans Group, a family-run Welsh hospitality company. The hotel (right) has 32 en-suite bedrooms, a fine dining restaurant and bar, games room and a spa and was awarded a Michelin key – a hotel version of a Michelin star – in 2024. Led by director Shon Morgans, the Morgans Group has built a collection of coastal hotels and dining venues across west Wales. He said: “North Norfolk and the Welsh coast share much in common: extraordinary landscapes, strong communities, and a serious commitment to food and hospitality, and we are excited to bring our experience to bear in support of the property. We are confident this marks the beginning of a very promising new chapter.”
Separately, Anglia Restaurants has re-acquired the Castle Carvery chain of restaurants from the RedCat Pub Company group. The deal sees it regain ownership of the Castle Carvery restaurants at the Racecourse and Clocktower in Norwich and the Castle Freehouse in Caister-on-Sea. Howes Percival’s leisure and tourism team advised Anglia Restaurants on the deal, having previously assisted it with the sale of the business in 2022.
Largest commercial letting ‘in at least a decade’ completed in Cambs town
The largest letting of any commercial property in St Ives in Cambs for at least a decade has been completed after a local manufacturer took up a major warehouse space. The industrial property at 41 Edison Road – a warehouse premises with two production areas, covering nearly 45,000 sq ft with offices, a canteen and other space – has been let on the Somersham Road Industrial Estate. Stephen Power, who led BTG Eddisons agency on the letting, said: “The location of 41 Edison Road was always going to command attention from industrial occupiers needing substantial premises. Its extensive refurbishment added another layer to its tenure appeal.” He added: “There is an ongoing shortage of availability of good quality premises in the industrial property market in the area.”
New head of commercial appointed at property agency
Property agency Fenn Wright has appointed John Birchall as head of commercial at the firm. Formerly a partner at the estate agency, he will manage the firm’s commercial agency team – alongside partners Alistair Mitchell and Michael Moody – as well as its building surveying, property management and valuation teams across Essex and Suffolk. John Birchall (photo) is a chartered commercial property surveyor and RICS registered valuer with wide experience. He said: “Fenn Wright has an incredible history dating back to 1768 and a long-standing reputation for professionalism, consistency and trust. While the way we work and the markets we operate in continue to change, our core values haven’t. I’m thrilled to be stepping into my new role as head of commercial and look forward to building upon the agency’s legacy.” At the start of this year, Fenn Wright opened its 12th branch in Basildon. Meanwhile, its building consultants team is working on high-profile opportunities in London and its property management team is seeing strong demand in landlord and tenant matters.
Call for ‘greater transparency and faster rollout’ on public sector procurement spend
Suffolk Chamber is calling for the area’s councils to report on the value of contracts being awarded to local SMEs annually and to show how they aim to improve them. Nationally, direct public sector procurement spend with SMEs reached a six-year high of 21 per cent last year, according to a British Chambers of Commerce report. Public spending directly with SMEs was £45.2b in 2025, up from £43.9b in 2024, and £32.3b back in 2020. A third of public sector procurement spend in education, training and recruitment was with SMEs – while in defence and aerospace it was just 3pc. Ashley Shorey-Mills, Suffolk Chamber supply chain director, said: “Whilst these figures continue to give optimism for local SMEs, they also highlight the clear opportunity that still exists. Enabling and supporting SMEs to enter the public sector is vital to successfully turning the dial on these figures…”
Paul Simon, head of public affairs at the chamber, added: “We hope that the current council leaderships and those of the forthcoming unitary authorities will commit to not only reporting on these figures annually but will set out commitments as to how they aim to improve them in the future. Greater transparency and faster rollout is what Suffolk businesses are after.”
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