South Yorkshire Businesses Call on Government to Cut Taxes and Red Tape as Confidence Hits New Lows
16th July 2026
The latest South Yorkshire Quarterly Economic Survey paints a concerning picture for the region's economy, with business sentiment at some of the lowest levels seen in years.
In May, the three South Yorkshire Chambers of Commerce, Barnsley & Rotherham, Doncaster and Sheffield, hosted the second Quarterly Economic Survey of the year. The results reveal a region under sustained pressure, with rising costs, falling investment and weakening sales growth all pointing in the same direction: businesses need government to step back, not pile on.
Business conditions in South Yorkshire are looking extremely negative, with UK sales growth dropping to its lowest level since 2021, and overseas sales growth at its lowest in two years. Nearly 40% of businesses report that their cash flow has decreased in the last three months, and investment intentions are at their lowest since the pandemic. 64% of businesses expect prices to rise, the highest proportion since 2022.
A local business said,
"Businesses have faced constant pressure from every direction over the last few years. Some have adapted, some have survived, but very few have truly thrived. The latest round of increased regulation, taxation and employment costs will only add further strain at a time when many businesses are already operating on very tight margins. In some cases, the cumulative burden will simply become unsustainable for some. The likely consequence is not greater prosperity, but reduced investment, fewer opportunities, higher unemployment and ultimately increased government spending to support those affected."
Corporate taxation has overtaken other concerns as the single biggest worry for local businesses, with 58% citing it as their primary concern, up sharply from 43% last quarter.
Dan Fell, CEO of Doncaster Chamber, Louisa Harrison-Walker, CEO of Sheffield Chamber, and Carrie Sudbury, CEO of Barnsley & Rotherham Chamber, said:
"These results should be a wake-up call. South Yorkshire businesses are not asking for handouts, they're asking for room to operate. Every quarter, we hear the same message: taxation, regulation and rising costs are squeezing margins to breaking point, and it's holding back investment, growth and job creation across our region. Government needs to cut taxes, cut red tape, and get out of the way of business. That is what will drive growth, not more burdens placed on the firms that create jobs and opportunity."
A local business said, "The government are cutting the legs from under us. It is the first time I have ever felt like asking the question, 'is it worth it?' and I have survived Covid, economic hits and personal challenges. This government in two years has done more damage to me and my business than any other hit I have taken."
The survey also touched on workforce costs and youth employment, with a consistent and encouraging finding that employers remain willing to provide apprenticeships and opportunities for those outside the labour market. However, many businesses reported that government policy is creating increasing barriers to delivering these opportunities.
Another local business said,
"Junior and younger employee role costs have rocketed. That naturally creates pressure on the next tier up, and then the next again. With the exception of directors, every role within our company now costs more than it did just three months ago."
South Yorkshire's Chambers of Commerce will continue to put these findings directly in front of local and national decision-makers. With a new Prime Minister set to take office, the region's business community sees a real opportunity for a change in tone and direction on the economy. The message from South Yorkshire is clear and consistent: government must choose growth. That means cutting taxes, stripping out unnecessary red tape, and giving businesses the confidence and conditions to invest, employ and expand. This data shows exactly why that change in direction is so necessary, the cost of inaction is not standing still, it is decline.
(1).png)
.png)
