The Real Challenge is Only Just Beginning

Economic Outlook Roundtable: What Yorkshire’s Finance Leaders Are Saying About Growth, Hiring and the Road Ahead

Senior finance professionals from across Yorkshire recently joined Sharp Consultancy for an exclusive roundtable discussion featuring an economic update from Paul Mount, Economist and Deputy Agent at the Bank of England. The session provided a timely, in-depth look at the UK’s economic landscape — followed by a candid conversation about what businesses are experiencing on the ground.The picture that emerged was one of cautious realism. While official forecasts point to easing inflation and a gradual return to stability, many organisations across the region continue to navigate weak demand, rising labour costs, tightening legislation and stalled investment projects. Yet despite these pressures, there remains a strong sense of resilience and adaptability — qualities that have long defined the Yorkshire business community. At Sharp Consultancy, our specialist finance and accountancy teams speak daily to employers and professionals across commerce, industry, public practice and the not-for-profit sector. What we heard in this session closely aligns with the insight we gather from clients and candidates across the region. Below, we explore the key themes shaping business confidence, recruitment activity and the outlook for 2026. Inflation Is Easing, but Confidence Has Yet to Follow The Bank of England outlined its latest central forecast: Inflation expected to gradually return toward the 2% target. GDP growth set to remain modest but stable through 2026. Interest rates anticipated to settle around 3.5% based on market expectations. Unemployment projected to hold near 5%. However, the sentiment in the room was clear: despite improving headline numbers, confidence across most sectors remains fragile. Many organisations described the environment as “flat” — not contracting, but unable to capitalise fully on opportunities due to economic uncertainty. Sharp Consultancy continues to see this play out: businesses are stabilising rather than expanding, focusing on cash management, operational efficiency and carefully controlled hiring. Labour Costs Continue to Reshape Workforce Strategies Wage pressures were a recurring theme throughout the discussion. Employers highlighted: Significant increases to the National Living Wage. Higher employer National Insurance contributions. Expected future changes to minimum wage equalisation for younger workers. Rising cost and complexity associated with apprenticeships. These factors are pushing up costs at every level of the workforce and reshaping recruitment behaviours. Across Sharp Consultancy’s accountancy and finance divisions, we are seeing: Strong demand for replacement hires where roles are business critical. Lower volumes of growth hires, particularly in commercial and project-focused appointments. Clients increasingly prioritising candidates who bring breadth, adaptability and long-term value. Construction & Infrastructure: Capacity Under Pressure Leaders from the construction sector painted a challenging picture — one mirrored by many Sharp Consultancy clients operating across the wider built environment. Key themes included: Planning delays of 9–10 months, particularly related to the Building Safety Act. Businesses holding on to workforce capacity despite reduced margins — a strategy that may not be sustainable in 2026. Difficulty justifying new capital expenditure under IFRS when future cashflows are uncertain. Concerns that smaller subcontractors may not withstand prolonged delays or reduced demand.Yet, attendees also highlighted that construction could become a catalyst for economic recovery — provided policy reform and planning improvements unlock stalled projects. Manufacturing: Rising Costs and Shifting OperationsLeaders representing manufacturing shared concerns around: Rising energy and operational costs. Increased frequency of site closures and offshoring. Significant challenges in attracting engineering and technical talent. Early signs of contraction in several sub-sectors, with aerospace a notable exception. These pressures reinforce the growing importance of finance leaders who can model scenarios, manage volatility and guide long-term planning — roles Sharp Consultancy continues to support across the manufacturing landscape. Charity & Public Sector Organisations Facing Acute Strain For organisations reliant on local authority funding, the challenges are particularly stark. Attendees reported: Government and council funding caps. Rising NI, wage costs and VAT changes adding millions to annual budgets. Increasingly complex consultation requirements under forthcoming employment legislation. The likelihood of significant cuts to the frontline services in the months ahead.Sharp Consultancy’s continues to work closely with organisations navigating these pressures, supporting clients through restructuring, recruitment challenges and financial planning needs. Recruitment Outlook: Stability Over Expansion Across sectors, the message was consistent: 2026 is expected to be cautious, steady and focused on maintaining capability rather than expanding headcount. Attendees forecast: Workforce levels remaining broadly flat. Hiring driven by essential replacement roles. Transformation, M&A and large-scale project hiring likely to remain subdued. Improved recruitment confidence only once interest rates and policy direction stabilise. For employers, this means sharper competition for high-quality finance talent — an area where Sharp Consultancy’s specialist teams continue to provide targeted, market-led support. What Comes Next? A Slow but Steady Rebuild Despite the challenges discussed, the roundtable ended on a constructive note. Many leaders believe that once interest rates settle and stalled investment begins to move, the region could see a more meaningful upturn — potentially from 2026 onwards. Yorkshire businesses have proven time and again that they are resourceful, resilient and ready to adapt. Sharp Consultancy remains committed to supporting them through every stage — whether stabilising teams, recruiting future leaders, or navigating the next phase of growth. If you’d like to understand what these economic trends mean for your business or team, speak to our specialist consultants for a confidential market discussion. Contacts Us

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As we move towards Step 4 in the Government’s Roadmap to easing lockdown, businesses are looking at how they best navigate the coming months – and even years – as they consider what the new normal will be in terms of their day-to-day operations.

Whilst there is still, inevitably, much uncertainty about what the future holds – not least about whether restrictions will indeed be eased further in the next few weeks – organisations throughout the region will have, for some time now, been planning how they will move forward. Particular attention will be given to how they will look to manage their employees and the fine balance that needs to be bridged between continuing to work from home and a return to pre-COVID operations.

For some, ourselves included, the return to offices and workplaces began last summer when restrictions initially started to ease but for many, perhaps due to circumstances surrounding the nature of the business or a desire to wait for more certainty before making a commitment, it is only now that firmer decisions are being taken about what the way forward will look like.

In some ways, whilst hugely disruptive, and for some hugely devasting, the short, sharp shock of the country being forced into lockdown in March 2020 was an easier situation for employers to handle than the one currently being faced. There was no choice. The situation was at least clear; businesses had to do whatever was needed to get their teams set up and running from home as quickly and as efficiently as they possibly could. And whilst the optimists amongst us possibly viewed it as a temporary situation lasting (hopefully) a matter of weeks – at worst months – even the most pessimistic were unlikely to have envisaged that we would still be conducting meetings via Zoom or Teams and may not have seen colleagues in person in well over a year (or at all if they started a new role!).

The question of ‘what happens next?’ is not one which there is a universal answer with different approaches being considered and for some, decisions not being taken until well into 2022. Working from home has, in the most part, been quite successful; and even for those businesses for whom pre-COVID it would not have even been on the table for discussion, naturally the questions are now being asked – do we even need to return to the office at all?

Employers are faced with several potentially tricky dilemmas. Some employees may be desperate for a return to normal workplace life, others may have grown accustomed to the flexibility and more relaxed work life balance of being based at home. Some industries – such as manufacturing - may have to also consider how they handle situations where some roles are clearly defined as workplace-based versus those where they could be done remotely. Do they take a one-size-fits-all approach or do they try and meet the needs of their employees on an individual basis and if so, where do the compromises need to take place and how do you build unity and inclusion?

In the most part, there has been a collective ‘get through it the best we can’ spirit from both employers and employees. However, a more permanent shift will throw open several other considerations including the provision of suitable equipment, health and safety reviews and security measures to protect sensitive information.

From a recruitment perspective, the decisions that are made now could have a significant impact on a company’s ability to attract and retain talent moving forward. Those that feel unhappy with the outcome – whether that is a return to the office or continuing to work from home – may find it is the push that they need to look for an alternative role. And given that all businesses, even those of similar sizes, in the same sectors, even direct competitors, will all potentially be putting in place slightly different arrangements, factors which may previously have not even been part of the decision-making process could now the very thing which tips the balance in favour of one job offer over another.

There is also potential to muddy the waters when it comes to identifying what the ideal candidate looks like when briefing a new recruitment assignment. Previously simple criteria such as ‘a commute of no more than an hour’ suddenly no longer matters when everybody in the organisation is home-based, potentially opening up a much larger pool of candidates from which to draw from. However, this does not necessarily make the process any easier and without real clarity from the outset, it will likely, lead to a blurring of lines as a more varied range of decision-making factors come into play.

Employees also have questions that they need to ask themselves. Creating a makeshift work area within the family home on a temporary basis is one thing – but if the arrangement becomes more permanent, what do they need to have in place? Is there the space available to create a dedicated workspace on a long-term basis? There will also undoubtedly be less ‘turning a blind eye’ to a colleague’s poor wi-fi connection as employers, team members, clients and customers become less forgiving than they were towards those ‘making the best of it’ in difficult circumstances.

In addition, they need to look at how their career prospects may potentially be affected. Do they possess the necessarily skills to effectively manage their teams remotely on a longer-term basis? How to do they motivate and inspire when they may work alongside some team members day-to-day whilst others are based at home? Ensuring a consistency of message across a more disparate team or organisation will be a new test of leadership for many and one which will require those looking to make the step up into a more senior role or move roles to have a robust, yet flexible, approach to making it a success.

Unlike the initial plunge into lockdown, the emergence will not be done overnight. It could be many months, if not years, before we can fully regain a sense of normality. I am often asked if I expect that we will all eventually return to a more traditional Monday to Friday 9-5 office-based culture; my reply is always the same “certainly not any time soon”. Indeed, the coming months and possibly years, will most likely see businesses try and piece together the different steps, as if they are trying to master some tricky choreography, as they attempt to settle on the ideal solution.

During the first lockdown I heard a phrase which has stayed with me during these times; we might all be in the same boat but we are not sailing the same sea. That certainly rang true however now it is not just the sea that is different, the boats are too.

Sharp Consultancy specialises in the recruitment and executive search of finance and accountancy professionals. With offices in Leeds and Sheffield our highly experienced team of consultants recruit for temporary, interim and permanent roles across the full spectrum of positions throughout Yorkshire and beyond. CONTACT US today and speak to a member of our team about your recruitment needs or next career move.

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