A survey of 406 firms by Belfast Chamber found 71% are pessimistic about the city’s short-term prospects.

It’s the latest survey carried out by the business body in conjunction with Belfast City Council.

Belfast Chamber chief executive Simon Hamilton said it paints “a pretty bleak picture” for business conditions in the city.

“Whilst trading and profitability have both been strong over the past six months, there has been a stark drop in confidence for the time ahead,” he said.

The survey found that firms are less pessimistic when asked about the prospects of their own business or sector.

Just 44% believe their own business will get worse in the coming next months, with 35% predicting similar trading conditions, while 20% expect an improved picture.

But pessimism surged when asked about the city’s prospects as a whole.

“With 99% of businesses seeing fuel and electricity costs rising and other costs also on the rise, coupled with a considerable number of issues around recruiting staff reflected in the survey results, it is easy to see why optimism amongst Belfast businesses has declined,” said Mr Hamilton.

Elsewhere, the new survey showed the very mixed experience of businesses under Brexit and the Northern Ireland Protocol.

One-in-three felt their business has been negatively disrupted by Brexit, while 30% said it had no impact.

Of the 106 Belfast businesses trading in the Republic, 36% reported increased profitability in the past six months and 42% of the 41 firms trading with the rest of the EU also reported higher half year profits.

Simon Hamilton said businesses in Belfast have continued to exhibit an ability to weather whatever storm they may face.

“Although it seems that the impact of the pandemic has receded, it has been replaced by a whole host of new challenges,” he said.

“I am always impressed by the business community’s capacity to adapt and innovate but it is clear that on top of every ounce of resilience they possess, many will need urgent help from both government and a restored executive.”

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Staff members got together to support Sharon as she took part in Brave the Shave – where she had all of her hair shaven off – for Macmillan Cancer Support. Sharon raised £3,422 for the organisation which provides care and services to families and individuals affected by cancer, including Sharon and her colleagues.

There was a great turn out from friends, families and customers, while local cake suppliers made generous donations of their bakes which could be enjoyed by shoppers in exchange for a donation to the team’s cause.

Sharon was overwhelmed with the amount of support she was shown; “The support from my team, our shoppers, families and friends has been incredible over the past few months, helping us raise money in the lead up to the big day.

“We chose to fundraise for Macmillan as mine, and our store charity representative, Leah Spratt’s, families have been directly impacted by cancer and we have seen first-hand the support that Macmillan give. They made my family feel supported, showing compassion and care throughout the diagnosis and always went the extra mile.”

Joanne Young from Macmillan Cancer Support commented, “This donation will go such a long way to help people affected by cancer all across the country and it is so appreciated by all at Macmillan. Braving the shave is not an easy thing to do and we want to extend a huge thank you to all the staff and shoppers for taking part and donating.”

To find out more about Macmillan Cancer Support, or if you think you could Brave the Shave, visit: https://www.macmillan.org.uk/

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Retail sales volumes dropped by 1.6% in monthly terms in August, the Office for National Statistics said.

This was the biggest fall since December 2021 and worse than all forecasts in a Reuters poll of economists that had pointed to a 0.5% fall.

All of the main retail sectors – food stores, non-food stores, non-store retailing and fuel – fell over the month for the first time since July 2021, when Covid-19 restrictions on hospitality were lifted, the ONS said.

The period of mourning following the death of Queen Elizabeth poses another challenge to retailers, with widespread business closures due on Monday to mark the queen’s funeral.

Although inflation dipped below 10% last month, households are still grappling with the biggest price increases since the early 1980s, caused mostly by surging energy prices in the aftermath of Russia’s invasion of Ukraine.

The ONS said people also cut back on furniture purchases last month.

“Feedback from retailers suggests that consumers are cutting back on spending because of increased prices and affordability concerns,” it said.

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The post Retail squeezed as consumers rein in their spending first appeared on Neighbourhood Retailer.

As a knock-on effect from the cost-of-living emergency, businesses are seeing a fall in trade and customer levels. Coupled with raising inflation, a workforce crisis across the sectors, and remaining Covid pressures, many within hospitality and retail are struggling to remain viable with businesses shutting up shop every day.

Actions within the plan include:

• VAT to be reduced to 17%.
• Reinstate the reduced Tourism / Hospitality VAT rate to support businesses that rely on household discretionary disposable income and tourism spend.
• Restoration of the Business Rates Holiday which concluded in July 2022, running until April 2023.
• A UK wide reform of the business rates system to ensure online and out of town businesses are paying the same rate as high street businesses.
• Support from the UK Government for the devolved nations to reduce business rates by providing increased financial support through the block grants.
• The removal of VAT from energy bills to reduce energy costs.
• The Northern Ireland Executive to establish a Rural Town and Village Infrastructure Investment Fund to ensure our small and mid-sized towns and villages are supported during this economic crisis.

The action plan has been co-designed by Retail NI, Hospitality Ulster, Londonderry Chamber of Commerce, Bangor Chamber of Commerce, Ballycastle Chamber of Commerce, Ballymena Chamber of Commerce, Banbridge Chamber of Commerce, Belfast Chamber of Commerce, Causeway Chamber of Commerce, Lisburn Chamber of Commerce, NI Takeaway Association, Newry Chamber of Commerce, Newtownards Chamber of Trade, Omagh Chamber of Commerce, and Portadown Chamber of Commerce.

In a joint statement, the leaders of the 15 business organisations said: “We are at a critical juncture as a perfect storm of factors is causing devastation for the retail and hospitality sectors and could see thousands of businesses threatened over the next months if no action is taken.

“Out of control energy bill increases, labour shortages, inflation, National Insurance increases, and sky-high business rates – the highest in the UK – are risking the business climate of Northern Ireland. Fears that many will simply go under in the next months without government assistance are keenly felt and we cannot continue on this path of destruction any longer.

“We are pushing customers away due to having to raise prices to keep pace with these rising costs, which is therefore having a detrimental impact on trade and consumer confidence.

“Intervention is required by the UK Government, as well as the limited powers of NI Executive Ministers, to stave off the worst of this crisis on business owners and provide tangible support and resources that could keep trade viable.

“Our plan has achievable, tangible solutions that would support business from day one. Actions including a reduction in the VAT rate to 17% to encourage more households to spend on the high street; increased financial assistance through the block grant to alleviate the cost of business rates; and the implementation of the NI High Street Taskforce Report will help bolster business back to viable trading levels.

“We call on both Governments to consider our proposals and engage with the business community on how best to implement urgent actions that can alleviate these crippling pressures. It will support both businesses and consumers in this most pressing of times.”

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