• Swindon & Wiltshire Economy
• Tuesday March 25 2025
• Author Name: Peter Davison

Mid-market firms in South West put brakes on recruitment in face of rising costs

Mid-market firms in South West are freezing their recruitment drives in the face of rising costs, according to a major new survey by accountancy firm Grant Thornton.

The firm’s Business Outlook Tracker suggests that 65 per cent of firms say they are reducing or freezing hiring over the next six months – up from 38 per cent in December – shortly after the government’s Autumn Budget announcement.

Similarly, more businesses have now formed plans to pass rising employment costs on to customers – up to 78 per cent from 46 per cent in December.

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.

But despite these challenging decisions, the research – which offers a rolling indicator of mid-market business sentiment – shows optimism throughout the business community, with 80 per cent of mid-sized firms in the region expressing optimism about their revenue growth prospects over the next half-year.

Lauren Carlyle, practice leader for Grant Thornton UK LLP in the South West, said: ”Local business leaders are making tough but necessary decisions today that will protect their growth trajectory tomorrow.

“The diverse economic landscape of the South West, from the tech sector to tourism and services, gives our mid-sized firms a distinct advantage in terms of agility compared to larger corporations that may be more exposed to international volatility.

“Many companies have already weathered challenging economic conditions and have prepared for future prospects.

“This positive sentiment isn’t just reflected in surveys – it’s evident in conversations we’re having with business leaders across the region, who are actively investing in their future despite cost pressures.

“As we approach the Spring Statement, businesses 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.”

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