Yorkshire businesses remain positive about the region’s economic growth outlook, but many feel it does not receive its fair share of public investment, according to new findings from the Lloyds Business Barometer.

More than three quarters (76%) are confident Yorkshire's economy will grow over the next three years, with 24% feeling very confident. This compares with 75% in Wales, 78% in the East Midlands and a UK average of 82%.

More than two in five (44%) believe Yorkshire’s economy will outperform the UK as a whole over the next 12 months, while 35% disagree. This is broadly in line with the UK average of 43% and just behind the South East at 45%.

Among Yorkshire firms confident about growth, the leading anticipated driver is a local planning regime supportive of business development and growth (47%). This is followed by investment in apprenticeship schemes (38%) and investment in transport and logistics infrastructure (30%).

Just 37% of Yorkshire firms feel the region receives its fair share of public investment, the lowest proportion of any UK nation or region and well below the UK average of 64%. Almost a third (31%) disagree that Yorkshire receives its fair share.

More than a third (36%) of businesses surveyed say they have already witnessed notable growth in Yorkshire over the previous three years. Overall, more than three quarters (76%) report some degree of growth in the region’s economy.

Among Yorkshire firms that have experienced growth over the past three years, 35% point to investment in green energy infrastructure. Investment in apprenticeship schemes (34%) and digital infrastructure (33%) are the next most-cited factors.

However, one in five (21%) Yorkshire firms say the regional economy has declined over the past three years. This is joint-highest in the UK alongside Scotland and above the UK average of 13%.

The Lloyds Business Barometer survey is made up of 1,200 UK firms from across all regions and sectors.

Yorkshire firms remain optimistic about the region’s growth prospects, and it is encouraging that more than three quarters expect the economy to grow over the next three years

Businesses are clear about what will help turn that confidence into sustained growth. A supportive planning system, continued investment in apprenticeships and improvements to transport and logistics infrastructure will all be important in helping firms invest, expand and create jobs.

However, the findings also highlight concerns about Yorkshire’s share of public investment and the proportion of firms that have experienced an economic decline. Addressing these concerns and turning investment into visible progress across the region will be important in strengthening business confidence and unlocking Yorkshire’s long-term potential.

The national picture

More than four in five UK businesses are confident in their regional economic growth in the next three years, with planning and investment in community and transport reported as the key drivers of future regional economic growth, but there is a divide in how businesses perceive public investment is distributed across the UK.

Confidence was highest in the North East, where 90% of businesses expect regional economic growth, followed by the South East at 89% and the North West at 88%.
When businesses were asked about public investment in their region, 85% of London firms perceive their region receives its fair share. This falls to 37% of businesses surveyed in Yorkshire and the Humber and 38% for businesses in Wales. This compares to 64% of all businesses across the UK who perceive their region receives its fair share.

Meanwhile, 62% of businesses in London think it will outperform the UK economy in the next 12 months, the highest proportion surveyed. By comparison, only 28% of businesses in the East Midlands and South West believe their region will outperform the UK economy, followed by 31% in Scotland, 34% in Wales and 37% in the East of England.

Amanda Murphy, CEO for Lloyds Business and Commercial Banking, said: "Businesses across the UK are telling us they see opportunities to grow.

"Turning this ambition into action requires public and private investment working together to create the right environment for growth.

"Whether its investment in infrastructure, skills, innovation or research, businesses have a clear view of what they need locally to drive growth.

"Every region and nation has its own unique strengths and, by building on these, businesses will have the confidence to invest, create jobs and unlock their full potential."