Business confidence in the East Midlands remained stable at 35% during April, according to the latest Business Barometer from Lloyds Bank Commercial Banking. 

Companies in the East Midlands reported slightly lower confidence in their own business prospects month-on-month, down three points at 34%. When taken alongside their optimism in the economy, up three points to 36%, this gives a headline confidence reading of 35% (the same reading as in March). 

Businesses in the East Midlands identified their top target areas for growth in the next six months as investing in their team, including hiring new staff and investing in training (37%), evolving their offering with new products or services (37%) and introducing new technology (32%).  

A net balance of 49% of businesses in the region also expect to increase staff levels over the next year, up 22 points on last month.  

The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.  

National picture 

Overall UK business confidence held steady at 42% in April, the same level as recorded in March and February.   

While firms’ confidence in their own prospects dipped marginally by four points to 45%, their confidence in the economy rose by four points to 39%. Meanwhile, the net balance of companies planning to increase staff levels over the coming 12 months climbed six points to 33%.   

The East of England was the most confident UK nation or region in April (56%), followed by Wales (51%) and the North East (46%).   

Sector insights 

Businesses in the manufacturing sector reported increased confidence this month, recording an increased score of 45% (up four points) which is the highest level for three months. Similarly, confidence among firms in the services sector (42%) and construction (41%) also improved, largely driven by greater economic optimism.  

In retail, confidence pulled back slightly from last month’s strong showing to 40%, illustrating that confidence in this sector remains fragile. Retail is also more liable to be impacted by external factors other sectors do not face into, such as the poor weather. 

Dave Atkinson, regional director for the East Midlands at Lloyds Bank Commercial Banking, said: “Although confidence remained flat this month, East Midlands businesses are still demonstrating positivity, with more firms looking to increase staff levels alongside active plans to grow their offerings to staff. 

“We know from our conversations with local businesses that the ambition and drive is there to carve out new routes to growth, and the region’s £1.4bn devolution deal, which will see the appointment of the first ever mayor for the East Midlands Combined County Authority, will only create more exciting expansion opportunities.” 

Hann-Ju Ho, Senior Economist, Lloyds Bank Commercial Banking, said: “We are beginning to see a consistent trend emerge from our Barometer results in recent months. Businesses are feeling increasingly confident about the economy, coinciding with falling inflation and hopes that interest rates will start to fall this year.  

“There continues to be a mixed picture among the regions, with the biggest rises seen in Wales and the South West. The strongest confidence was reported in the East of England, with confidence rising for the third consecutive month. Confidence in the North East eased slightly but remained strong in April.   

“The second quarter of 2024 has started brightly for businesses, and we are seeing firms expressing greater confidence in an enduring economic recovery.” 

People across Derbyshire and Nottinghamshire are just days away from a decision that will determine how billions of pounds is invested in the regional economy. Voters from across Derbyshire, Derby, Nottinghamshire and Nottingham will elect the first-ever East Midlands mayor on Thursday 2 May. The mayor will lead the new East Midlands Combined County Authority (EMCCA), which will have access to more than £4 billion of new investment in the region for skills, transport, housing and regeneration and net zero – with further investment likely to follow. The vote has been hailed as an “historic moment’ in the region’s future which can turn round decades of under-investment. It also means decisions about key issues affecting the future of people, places and businesses across the East Midlands will now be taken here in the region rather than down in Westminster. Mark Rogers, the interim Chief Executive of the EMCCA, said: “It’s absolutely vital that people across all of the East Midlands’ businesses and communities go to the polls on 2 May. This is their region, their mayor and their vote – and it’s going to have a major impact on their future. “For people across Derbyshire, Derby, Nottinghamshire and Nottingham, this is a genuinely historic moment. For the first time, they will have regional control so that decisions about major issues can be taken in a way that suits regional needs rather than a one-size-fits-all national policy. “By voting for a mayor, they will also have an elected figurehead who can speak up for the East Midlands nationally, and be at the top table to help secure a fair share of funding in the future. “If you look across the region, you can see huge potential for progress all the way from communities to businesses. With a mayor and a combined authority, we will be able to tailor the way we invest so that it makes the most of those opportunities.” The £4 billion investment has been made possible by a landmark devolution deal which means government has handed back some of its powers to an East Midlands mayor and combined county authority. This means the East Midlands will now be on the same level as the West Midlands, Greater Manchester and South Yorkshire, where elected mayors and combined authorities have secured substantial investment. The EMCCA is a new organisation which will have only a small team supporting its work. It is being funded by government and will not take money away from existing council budgets. While existing councils are set up to deliver specific local services in defined areas, EMCCA will focus on major strategic issues across the whole region. Decision-making will be led by the elected mayor, and will be based on four key priorities: · Skills and adult education – working with the region’s employers and skills providers to ensure people develop skills that enable them to access fulfilling careers. · Homes – working with local authorities, landowners, developers and housing providers to create affordable, good quality homes and retrofit existing homes to make them more environmentally sustainable. · Transport – working with local and national transport providers to improve infrastructure and services in a way that best serves the region’s needs. · Net zero – invest in new forms of clean energy and develop a clear path for the region to achieve net zero. Mark Rogers added: “This is a huge opportunity for people and businesses all over the East Midlands to make the most of regional control and shape their destiny. Instead of these big decisions being made down in Whitehall, they’ll be made here by people who know the region, and understand its challenges and how to exploit its many opportunities. “Voting for a mayor on 2 May is only the start. With more than £4 billion of funding available, it means the mayor and EMCCA can kick-start progress, attract further investment from business and government, and drive improvement in issues that matter to everyone. “This is all about making the most of new powers handed back to the region. The biggest power of all lies with voters, and I urge people to make their choice by voting in the East Midlands Mayoral election on 2 May.” EMCCA has been made possible by a partnership between Derbyshire County Council, Derby City Council, Nottinghamshire County Council and Nottingham City Council.

Businesses local to Gedling or trading in and around Gedling are to be offered new support following the establishment of the new Gedling Business Support Network.

The new Network will be launched on Friday, 10 May at the Richard Herrod Centre in Carlton. It is being funded by Gedling Borough Council’s share of the UK Shared Prosperity Fund (UKSPF) and delivered by East Midlands Chamber.

Its aim is to enable local businesses to work together, learn new skills and stay up to date on relevant local, regional and national support.

As well as presentations from the Council and its partners on the fully funded business advice, training and consultancy on offer, the launch event will be highly interactive. Businesses will be invited to participate in practical exercises to share their challenges and to tell the stakeholders present exactly where they need the new Network to help.

Gedling Borough Council Portfolio Holder for Sustainable Growth and Economy Jenny Hollingsworth said: “I really look forward to meeting and hearing from local businesses and hope many, from in and around Gedling, are able to attend. “It is of particular relevance to businesses who want to grow Gedling’s reputation as a place to do business and explore opportunities to work with other local businesses.” East Midlands Chamber Deputy Chief Executive Diane Beresford said: “We’ve put together a series of interactive exercises to really drill down to what’s keeping Gedling businesses awake at night and how the Chamber and Council can address those issues, both through the Network and through support delivered through the Gedling Accelerator project and our routes into national programmes.”