ASK THE EXPERT – NATIONAL PAYROLL WEEK

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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What recent trends and changes have affected the payroll industry and how is this effecting what hiring managers are looking for when it comes to recruitment?

Sharp Consultancy has been at the forefront of transactional financial recruitment across the North for more than 25 years. Our highly experienced specialist team has an extensive network of talented candidates for roles across the full spectrum of levels within accounts payable, credit control, payroll and purchase ledger.

With established and trusted relationships with leading businesses and organisations throughout Yorkshire and the North of England, we offer expert knowledge and unrivalled understanding of the marketplace to enable you to access to the very best employment opportunities in the region and make the ideal next career move.

During National Payroll Week (Mon 6 – Fri 10 Sep), our team of specialist consultants will be sharing their in-depth knowledge and expertise and offering the best possible recruitment advice to employers and candidates working in the sector.

Today, Andrew Walker, Commercial Director looks at recent trends and changes and what hiring managers are looking for when recruiting payroll professionals.

Over the last ten years or so there has traditionally been a focus on recruiting candidates with particular experience, usually in relation to changes in legislation such as RTI, auto enrolment or most recently the Government furlough scheme. We are also now seeing much greater importance being placed upon qualifications, in particular the Chartered Institute of Payroll Professionals (CIPP).

Having fully trained payroll professionals is vital for organisations to ensure they remain compliant with the increasing number of regulations and legislation which impacts on the day to day running of a payroll department.

CIPP is the only Chartered Institute for payroll and pension professionals in the UK, and the training that they provide develops and formalises payroll knowledge and skills and demonstrates to employers that candidates with such qualifications work to the highest standards in the industry. In addition, CIPP members have access to the latest news and potential upcoming changes to ensure they are on the front foot to proactively respond to any updates and recommendations.

Traditionally, payroll was viewed as a more administrative role with far less emphasis placed upon qualifications when compared with today’s demands. However, due to the increasing amount of regulations and legislation, the way that payroll is now viewed has changed significantly and it is seen much more as a value-added role.

Due to a shortage of qualified candidates, companies should now be investing in training and qualifications such as the CIPP for their payroll staff, in a similar way to they do for accounts staff with AAT, ACCA or CIMA. And as a result – alongside the increased demand for payroll professionals due to changes in regulations and legislation – employers also want, need and can expect more from individuals in areas such as management information and reporting.

Those pursuing a career in payroll who hold such qualifications are seen as a very attractive prospect to employers and similarly, those companies which view qualified payroll professionals in the same way as accountants have been seen and offer formal training and professional qualifications, such as offering CIPP courses, will stand-out to candidates looking to make their next move. Those who do not offer adequate investment in training and development will find it harder to compete for the best talent and may also find that they are on the back foot when it comes to retention as demand for payroll staff continues to rise.

Sharp Consultancy specialises in the recruitment of temporary, interim and permanent transactional finance professionals across the full spectrum of roles including accounts payable, credit control, payroll and purchase ledgers. With offices in Leeds and Sheffield our highly experienced team of consultants recruit for positions throughout Yorkshire and beyond. CONTACT US today to find out more.