The view from the Thames Valley and Southampton mid-market
15 Nov 2021
Every two months, we ask business leaders across the country to share their expectations and priorities for the future. We want to track how sentiment is changing in the market and get insight on timely issues: from tax to ESG.
Read the latest views from business leaders in Thames Valley and Southampton.
What’s changed since August 2021?
Business revenue optimism reduces by 11%
Profit expectations fall by 20%
38% of businesses see the increased tax burden as the biggest threat to growth
32% of leaders said the current global and domestic supply chain issues are reducing profits
Jim Rogers, Thames Valley and Southampton practice leader at Grant Thornton UK LLP, said:
“The emphasis on research and development and tech in the Thames Valley region can be helpful in protecting businesses here from adverse international trade conditions - with the idea being that innovation will cross borders regardless of restrictions. However, a perfect storm of changing regulations, supply chain disruption, pandemic challenges and inflationary pressures are a cause for concern. The risk of being cut off from the materials and tools required to drive innovation poses a real threat to the region’s businesses, with just one example of this being the shortage of semiconductors, which looks set to continue for some time."
Business leaders profit expectations
“We are enduring a tough period where the panic buying of fuel, food and even Christmas toys has become part of our national dialogue, along with concerns about the rising costs of energy and consumer goods. Business confidence is clearly fragile, as they continue to try to recover from the pandemic but face an accumulation of challenges. Businesses will need to continue to draw on the agility and resilience they have already demonstrated so well over the past 18 months to safeguard their business through the winter and into 2022.”