Suffolk Chamber latest QES highlights challenges for business confidence and investment

“Most indicators are now flashing red”: report highlights deepening Suffolk business struggles 
According to Doug Field, chair of Suffolk Chamber of Commerce’s Economy Group: "Although we are seeing some quarter-on-quarter improvements in the service sector, the overall economic picture for the county remains alarmingly fragile."

Results from Suffolk Chamber of Commerce’s Quarterly Economic Survey (QES) for the period October to December 2025 showed that all but two indicators measured are now in negative territory. A negative balance indicates that a greater proportion of businesses reported worsening conditions in the last quarter than those reporting an improvement.
In addition, although most issues of concern remained largely unchanged, the number of companies citing corporate taxation as a worry stood at a recent high of 83% of respondents (up by 16 percentage points).

Inflation pressures were referenced by 56% and business rates, in effect another business tax, by 30% of respondents.

Despite the in-quarter improvements in the service sector, this only translated into a positive balance in two cases, both related to hiring of staff with more companies attempting to recruit and fewer finding difficulties in filling vacancies. Furthermore, the only in-quarter improvements in the manufacturing sector were in these same balances.

All trading, investment, confidence and cashflow balances across both sectors remain in negative territory as we enter 2026. 

Export trade balances across both sectors continued their dismal run, particularly in services. The export sales and export orders balances for Suffolk service sector firms have escaped negative territory in only five quarters since the onset of the pandemic.

Investment continues to wane across both sectors, though the service sector balances are not so strongly negative after improvements in Q4. 
For manufacturing companies, the largest negative scores were in domestic orders (-38%), investment in plant and machinery (-34%), domestic sales (-32%), cashflow (-29%) and confidence in improving profitability (-26%). 
For service companies, the worst performing balances were in confidence in improving profitability (-28%), export orders (-21%), investment in plant and machinery (-20%), export sales (-16%) and domestic orders (-14%).
Comments captured in the latest QES include:

•    “Uncertainty is a killer. Raised taxes for business and individuals will kill off what is left of the economy.” Small parts supplier, Ipswich

•    “It’s really tough and the environment of uncertainty created by the government hasn't helped. You cannot tax your way into growth.” Medium-sized manufacturer, west Bury St Edmunds

Paul Simon, Suffolk Chamber’s head of public affairs, said: “That most of the indicators measured in the QES are now flashing red - in negative territory and getting worse - is proof positive that urgent and concerted action is needed to reverse these trends as consistently and determinedly as possible.”

So, what needs to be done by the Government to help lift the lack of business confidence and so boost innovation, investment and sustainable jobs growth?
“For 2026, and to allow businesses to break out of this frustrating period of economic hesitancy, Suffolk Chamber is looking for Government to make it easier for businesses by both removing key burdens as to how they operate and by addressing market failures in terms of upgrading the county’s out-of-date infrastructure.”

Doug Field added: "Taxation is a key burden for businesses.  We need a tax system that is simpler and fairer. We need the Government to set out a clear plan for business tax cuts, using the 2026 Budget to roll back the hikes from 2024".