Confidence among North West businesses has turned a corner after a year of decline, according to Lamont Pridmore, a Cumbrian-based firm of chartered accountants.
The latest ICAEW Business Confidence Monitor (BCM) shows sentiment in the region has moved into positive territory for the first time since early 2024, rising to +0.2 in Q2 2025 from -3.5 in the previous quarter.
This is above the UK-wide average of -4.2, though still some way off the North West’s historical average of +5.7.
“This is the first real sign that confidence might be starting to return,” said Graham Lamont, Chief Executive at Lamont Pridmore.
“It’s not a huge jump, but after four straight quarters of decline, even a small move in the right direction is welcome. It shows that businesses are starting to feel slightly more hopeful about what’s ahead.”
Businesses in the North West reported stronger-than-average domestic sales growth of 3.4 per cent over the past year, with exports also rising by 3.0 per cent.
Looking ahead, firms are forecasting even stronger growth, particularly in domestic markets.
“We’re seeing a strong performance from sectors like professional services and manufacturing,” said Graham.
“A lot of firms we speak to are busy and are expecting that to continue through the rest of the year.”
Despite the improving outlook, businesses in the region are still facing serious challenges.
Nearly half (49 per cent) identified the tax burden as a rising issue, a figure significantly higher than in previous years.
“Costs are still a big concern, particularly when it comes to employment taxes,” said Graham.
“The increase in National Insurance back in April hasn’t gone unnoticed. As we expected, many businesses are feeling squeezed, especially smaller firms trying to grow.”
Skills shortages are also making it harder for companies to expand.
“A lot of businesses are struggling to find the right people, particularly in specialist or technical roles. That’s something we hear time and again from clients across the region.”
Profits in the North West grew by 2.5 per cent over the last year, a little below the UK average, but businesses are far more positive about the year ahead, projecting growth of 5.4 per cent.
That’s the strongest forecast of any region in the country.
“We’re definitely seeing more conversations around growth and investment,” added Graham.
“There’s a sense that if businesses can weather the current challenges, there are opportunities ahead and they want to be ready for them.”
The North West is leading the UK on expected employment growth, with companies forecasting a 2.0 per cent rise over the next 12 months.
“Recruitment activity remains strong across the region, which is a positive sign, but there’s definitely pressure to pay more to secure the right people, and that’s putting strain on some employers.
“Things aren’t perfect, and most businesses would say that, but the overall mood is a bit more hopeful than it has been for a while,” Graham explained.
“After a tough couple of years, business owners are used to dealing with uncertainty. The difference now is that many feel slightly more in control, and they’re starting to plan ahead again.”
“We’re supporting clients across the region with everything from financial planning to recruitment. There’s still plenty to be cautious about, especially with the Autumn Budget to come later this year, but with the right strategy, businesses can absolutely make progress this year.”
Further information about Lamont Pridmore is available by telephoning 0800 234 6978 or emailing info@lamontpridmore.co.uk
