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Suffolk businesses face "most challenging environment since COVID"

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Suffolk Chamber of Commerce's latest survey reveals local business activity and future prospects have plummeted to their lowest point since 2020/21.

Why it matters: The vast majority of economic measures are now in negative territory, with more companies reporting declines than improvements, signalling significant challenges for the local economy.

By the numbers:

  • Nearly 80% of Suffolk respondents expressed concerns about business taxation levels

  • Inflation fears jumped to 53% of companies, up 12 percentage points from last quarter

  • Just a fifth of Suffolk manufacturers and a third of service sector businesses are operating at full capacity

The details: The Quarterly Economic Survey for the first three months of 2025 shows steep declines across most sectors, with manufacturers reporting their worst figures since Q2 2020:

  • Cashflow down 20 percentage points to -35%

  • Capital investment down 23 percentage points to -29%

  • Investment in training down 10 percentage points to -16%

  • Confidence in turnover improving down 11 percentage points to -5%

Service sector hit harder: Declines were even greater for the county's service companies with significant falls in:

  • Domestic sales (down 26 percentage points to -12%)

  • Domestic orders (down 25 percentage points to -25%)

  • Investment in training (down 29 percentage points to -37%, the worst since Q2 2020)

What they're saying: "It's really tough out there and the agenda for growth seems very challenging. Another minimum wage increase is unwelcome when coupled with Employer NI increases. It's only going to get more challenging," said a manufacturer in West Suffolk.

"The worst business conditions in our 25-year history," reported a creative services company in East Suffolk.

Root causes: Business leaders identified several factors behind the downturn:

  • Increases to tax liabilities introduced by the Government

  • Removal of some business rates reliefs

  • Lowering the threshold for Employer National Insurance Contributions

  • Above inflation increases to the National Living Wage

  • Uncertainty over the wider global trading situation including US tariffs

Job market impact: The economic tightening is affecting employment, with manufacturers reporting a 22 percentage point fall in recruitment attempts over the last three months, while service companies saw a seven percentage point decline.

Paul Simon, Suffolk Chamber of Commerce
Nicky WestNicky West

What's next: Paul Simon, Suffolk Chamber's head of public affairs, called for two key measures:

  1. No further tax hikes on businesses during this Parliament with progressive reduction in business taxes.

  2. Infrastructure investment in the forthcoming Spending Review, including improvements to the Ely and Haughley rail junctions, and enhancement of the county's strategic road, 5G and water supply infrastructure.

The bottom line: Suffolk businesses are struggling under multiple economic pressures, with the Chamber of Commerce warning this is the most challenging business environment since the COVID pandemic.

Ed Sheeran surprised more than 200 Ipswich students with an impromptu performance at The Baths

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Check out upcoming BTC events across their three brilliant venues

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College students launch 29 community projects during social action month

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Students at Suffolk New College have created 29 social action projects this month, including an anti-knife crime basketball match and a charity thrift shop.

Why it matters: The college-wide programme aims to make a positive difference in the local community while promoting sustainability and addressing social issues, such as knife crime.

The details: The campaign kicked off with a staff-versus-student basketball match designed to encourage people to unite through sport rather than divide through crime.

Suffolk New College staff member Mike Mears in the staff v student anti knife crime basketball match
Suffolk New College staff member Mike Mears in the staff v student anti knife crime basketball matchSuffolk New College

Anton Dixon, basketball coach for Suffolk New College, said: "The game was a huge success, bringing energy, competition, and most importantly, a strong sense of community.

"Beyond the game, this event was about more than basketball. It was a celebration of the hard work and dedication these young people have shown all year, committing to something bigger than themselves, building a community in a space that encourages growth, respect, and positive change -- that rejects crime."

Marley Gunn, 18, from Ipswich, who played on the student team, said: "Sport gives me a safe environment and gives me something positive to do with a group of friends."

Staff members narrowly defeated the students in the match.

What else is happening: All social action activities have had a sustainability theme, including:

  • Art and design students establishing a thrift shop to raise money for Got to Read, an Ipswich-based charity that helps adult learners read

  • Litter picking and river cleaning initiatives

  • Two groups of music students creating charity singles using sustainable materials for St Helena Hospice and the British Red Cross

Jake Smith and Emily Merry-Brown helped create a pop up thrift shop to raise money for charity during a social action month at Suffolk New College
Jake Smith and Emily Merry-Brown helped create a pop up thrift shop to raise money for charity during a social action month at Suffolk New CollegeSuffolk New College

Emily Merry Brown, 18, from Felixstowe, who helped organise the thrift shop, said: "It's great to raise money for a really good cause. The event helped bring the college and the community together. It's nice to support where we can."

Jake Smith, 18, from Ipswich, added: "Sustainability helps make the world a better place."

What they're saying: Hayley Rigby, a personal development co-ordinator at the college who was key in creating the social action month, said: "Social Action Month is all about getting the students to shine a light on injustices in society and highlight sustainability.

"Year three students from across our four college campuses have created projects and this programme of social action has been running for the last four years. The students have been really engaged and positive and we have 29 projects happening this year."

Mike Mears, head of student personal development, added: "At Suffolk New College, we're immensely proud of our students' commitment to sustainability. Through the social action meek, I've seen first-hand the incredible impact of their projects, from litter picks to sustainable fashion. Our college community, including staff, has come together to inspire and drive positive change for a brighter, eco-friendlier future."

The bottom line: The month-long initiative demonstrates how educational institutions can engage students in meaningful community work that addresses important social issues while developing sustainable practices.

Ed Sheeran surprised more than 200 Ipswich students with an impromptu performance at The Baths

Browse upcoming gigs

Check out upcoming BTC events across their three brilliant venues

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