Suffolk Chamber of Commerce’s Quarterly Economic Survey (QES) for July–September 2025 Shows Local Businesses Under Pressure

The daily business grind continues” as Suffolk survey records continued difficult conditions

Results from Suffolk Chamber of Commerce’s Quarterly Economic Survey (QES) for July to September 2025 has reinforced the business organisation’s call for no new business taxes in the forthcoming Budget as local firms continue to struggle with entrenched financial pressures.

Although manufacturers recorded quarter-on-quarter improvements in a number of the measures recorded by the QES, including domestic and overseas sales and orders and cashflow, virtually all of these still remain 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.

The only two measures in positive territory for manufacturers are domestic sales (+6%) and confidence in improving turnover (+14%), with the latter nonetheless recording a 19-percentage point quarter-on-quarter fall.

Worryingly, prospects for increases in investment in plant and machinery on the one hand and training on the other look set to worsen with negative figures of -14% and -11% respectively.

In the case of the service sector, virtually all measures recorded quarter-on-quarter declines and all but one is now in negative territory. Of particular concern are figures for cashflow (-36%), investment in plant and machinery (-30%), investment in training (-32%), confidence in improving turnover (-21%) and confidence in improving profitability (-35%).

More businesses reported a contraction in staff numbers in the third quarter of 2025 than those who saw an increase. Suffolk businesses of all types expect no increase in taking on new staff in the next quarter, and the percentage of service sector respondents from the county who attempted to recruit staff (46%) hit its lowest level since the second quarter of 2021, when COVID restrictions were still in place. 

Concerns over corporate taxation remain the largest single worry among Suffolk’s business community with no fewer two-thirds of respondents identifying it as an excessive burden.

Inflation pressures saw a particularly unwelcome spike, with 58% of respondents now identifying growing price pressures as a significant concern, up from 43% in the previous quarter. The percentage of businesses expecting to raise prices in in the coming quarter now sits at around 50%. 

Comments captured in the latest QES include:

“The Government is proceeding over a slow-motion car crash with nothing to offer but more tax rises and regulation” (recruitment agency)

“The national insurance increase has resulted in a reduction of staff due to the cost of employing full time team members. We expect to further reduce headcount coming into the quieter time of the year.” (hospitality company)

“Confidence is low and we're seeing this from consumer and b2b in the UK.” (services firm)

Paul Simon, Suffolk Chamber’s head of public affairs, said: “Quite simply, the evidence from Suffolk Chamber’s latest survey suggests that the daily business grind continues – and is likely to be locked-in for many months. Suffolk businesses are penned in by high taxes and rising prices and so they are scaling back their investment plans. And that is bad news for growth and jobs.”

Doug Field OBE, chair of Suffolk Chamber’s Economy Group, explained what the business organisation wanted to see from the forthcoming Budget as a result of this evidence: “Quite simply, there must be no more business taxes in November! Indeed, Suffolk Chamber is calling on the Government to map out a clear pathway for lowering business taxes throughout the rest of this Parliament.  Get this right, and our economy thrives. Get it wrong, and we all pay the price."