In December last year, shortly after the Autumn Budget announcement, 43% of businesses said they planned to reduce or freeze hiring in the next six months - that figure has now increased to 50%.
Employees of mid-market businesses are also more likely to be impacted by business leaders’ plans to offer reduced or no pay increases and bonuses, as well as reviewing their employee benefits offering.
Despite these challenging decisions, the research, which offers a rolling indicator of mid-market business sentiment, shows a remarkable surge in optimism throughout the business community in the East Midlands. A striking 73% of mid-sized firms in the East Midlands express optimism about their revenue growth prospects over the next half-year, up from 65% in December 2024.
The research highlights that the business ecosystem in the East Midlands is demonstrating remarkable resilience, with over 72% of business leaders expecting profit increases over the next six months, up from 43% in December 2024.
By contrast, larger corporates across the UK are now less optimistic about both their own fortunes and those of the wider UK economy, as the Business Outlook Tracker recorded a drop in confidence from the 200 larger businesses also surveyed:
- -10pp decrease in their optimism about the outlook of the UK economy
- -3pp decrease in their optimism about their funding position and their revenue growth
- -2pp decrease in those expecting their profits to increase
Matt Buckingham, Practice Leader for Grant Thornton UK LLP in the Midlands, said:
"Beyond the numbers, what we're seeing across the East Midlands is the remarkable adaptability that makes our region such a vibrant business hub. Local business leaders are making tough but necessary decisions today that will protect their growth trajectory tomorrow.
"The East Midlands boasts a robust ecosystem of both large international corporates and agile mid-sized firms, with strong sectors spanning manufacturing, energy, tourism, and professional services. While major corporations leverage their global reach, local mid-market businesses demonstrate a particularly versatile approach to economic challenges. This unique combination of scale and adaptability gives our region's businesses a competitive edge, enabling them to pivot quickly and innovate in response to changing market dynamics."
"This positive sentiment isn't just reflected in spreadsheets – it's evident in conversations we're having with local business leaders who are actively investing in their future despite cost pressures. As we approach the Spring Statement, businesses in the East Midlands will be watching closely, but the practical, can-do attitude demonstrated by our region's mid-market suggests they're well-positioned to navigate whatever challenges lie ahead."