Pictured: Matt Buckingham, Grant Thornton
East Midlands businesses are maintaining a broadly optimistic outlook despite grappling with rising costs and the prospect of further tax increases, according to new data from Grant Thornton UK.
Findings from the firm’s latest Business Outlook Tracker show that confidence among mid-sized companies in the region remains high, with 88 per cent of business leaders expressing a positive view of the UK economy. A similar proportion expect to maintain or increase recruitment investment over the coming six months, despite weaker labour market indicators nationally.
The survey, which canvassed views from across the mid-market, paints a picture of cautious resilience. High operating and staffing costs remain a concern, particularly in the wake of April’s rises in employer National Insurance and National Minimum Wage contributions. Four in five businesses in the region said they had been forced to reduce or freeze hiring as a result, while 78 per cent had cut jobs.
Even so, the majority of East Midlands business leaders appear reassured by the direction of government policy. Over 70 per cent believe that current measures support business growth, with nearly nine in ten agreeing that government strategy is helping to promote economic stability. Most also view the Industrial Strategy as a positive force for their business.
Revenue forecasts remain robust, with 90 per cent expecting steady growth through the remainder of the year. Seventy per cent anticipate an increase in profits over the same period.
The region’s resilience is underlined in Grant Thornton’s East Midlands 200 2025 report, which tracks the area’s fastest-growing businesses. The top 200 firms have collectively generated more than £10 billion in revenue and posted an average profit growth of 33 per cent.
Matt Buckingham, Midlands practice leader at Grant Thornton UK, said:
“East Midlands businesses have become adept at navigating uncertainty. From Derby’s advanced manufacturing base to Nottingham’s thriving tech and life sciences sectors, the region continues to push forward against a challenging backdrop.
“Rising costs, particularly following recent changes to National Insurance and the Minimum Wage, are clearly being felt. And while there is some confidence in the government’s direction of travel, many firms are bracing for further fiscal pressure.
“Nonetheless, the region’s businesses are responding with pragmatism and purpose — adapting pay strategies, managing pricing, and continuing to invest in people. Our latest East Midlands 200 report demonstrates the strength of that mindset, and the enduring vitality of the region’s entrepreneurial base.”
