South East: Grant Thornton survey finds business leaders optimistic despite recent turbulent events

New research from the Grant Thornton International Business Report (IBR) reveals that the country’s business leaders remain highly optimistic over the UK's economic prospects.

Financial specialists at Grant Thornton in Southampton say that UK business optimism has remained buoyant in the third quarter of the year, reaching 82% – just 1% below the all-time high reached in the first quarter of the year. This places UK business leaders as the second most optimistic globally in the 34-economy survey.

The statistics, informed by the views of over 120 senior UK business leaders and collected in the run-up to the vote on Scottish independence, also suggest that economic uncertainty remained a low concern for businesses, with only 16% of businesses citing this as a worry despite recent turbulent events in the UK and overseas.

Experts at Grant Thornton listed access to finance as a key concern for some (14%) businesses, and concerns over a lack of skilled workforce persist, reaching a record 28% in the third quarter.

Moreover, a record 85% of businesses are expecting to offer their employees a pay rise within the next 12 months.

Norman Armstrong, partner at Grant Thornton in Southampton, said: “Despite the period of political uncertainty in the lead-up to the Scottish referendum, business leaders on both sides of the border kept their composure and focused on the current economic realities.

“Although the overall picture for UK businesses has improved considerably over the past year, some of the fundamental pillars of sustained growth still remain fragile. For the region to really capitalise on current momentum and cultivate a business environment that's fit for the long term, a lot more work will need to be done, particularly by the Government, to better support the UK's crucial mid-sized businesses (MSBs) which are powering our economy.

“Addressing the skills shortage through financial and tax incentives for MSBs to train even more apprentices; and introducing initiatives to ease the financing shortfall, such as reintroducing the corporate venturing scheme, the Government could unlock substantial growth potential which, in turn, would translate into increases in jobs, income and quality of living.”