Staff turnover a growing concern among South West businesses

Staff turnover and late payments are two main areas of concern for small business in the South West according to a study by the chartered accountancy body ICAEW.

It found that across the UK business confidence remains negative for sixth consecutive quarter though the South Weset is more optimistic asa region. than rest of UK. 

Confidence has been generally in decline in the South West since 2014, in line with the UK, the quarterly ICAEW Business Confidence Monitor™ report for the region, has found. It's likely this is related to Brexit uncertainty and political instability.

Companies reported sales up by 4%, compared to 3% in the same quarter last year, but this has been offset by weaker exports. Exports rose by 2.3% in Q4 2019, compared to 3.7% in the same quarter of 2018.

For a quarter of companies (28%) based in the South West staff turnover is a growing concern, and a fifth of companies (21) feel the same about late payments.

As a result, investment spending in the South West remains flat. Growth in capital investment stands at 1.5% while growth in research and development budgets is up just 0.9%, the slowest rate of growth in the region since Q2 2012.

Beverley Waters, ICAEW South West Regional Director, said:

“Growing concerns among businesses over staff turnover and late payments is not surprising, as Brexit uncertainty continues to take its toll on business in the South West and across the UK. We hope  the new government will ease the strain on businesses and bring some much-needed stability to the economy.

“However confidence among business professionals in the South West is marginally above the UK as a whole, despite remaining negative. This could partly be down to the investment coming into the thriving aerospace and defence sectors, with the likes of Spaceport and Babcock securing large amounts of funding recently.”

To read the full report for the South West click HERE!