NATIONAL PAYROLL WEEK - Andrew Walker

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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To mark National Payroll Week, we asked our Commercial Director Andrew Walker, who has more than 20 year’s recruitment experience and focuses on the placement of transactional finance and payroll specialists in South Yorkshire for insight into the current market.

How is the current marketplace and what are your expectations for how the next 6-12 months will look?

Payroll has been particularly in demand over the last 12-24 months and the employment market is still extremely buoyant, with demand outweighing supply.

The next 6-12 months may depend upon any changes in the economy; as it stands there is no sign of the employment market slowing down, however that may change if we enter a recession and belts tighten.

What are the main recruitment challenges being faced?

There’s high demand from employers for quality, experienced specialists however a short supply of suitable candidates, compounded by a historical lack of investment in training new payroll staff means that the balance is unlikely to be restored in the short to medium term.

What should employers be doing to overcome these challenges?

Employers need to be looking at one of two approaches. Firstly, raising salaries both in terms of retaining their own talent and also to attract the limited number of candidates looking for a new role. Payroll salaries have risen considerably in the last 24 months and, whilst demand outweighs supply, will continue to rise. Effectively, companies will find that they are paying a premium to secure the personnel they need and be the employer of choice.

Secondly, there needs to be a return to recruiting and investing “rookies” in order to grow their own talent through training and development. Many clients are recruiting graduates, AAT studiers, or administrators and training them in payroll and providing support for relevant qualifications such as the CIPP (Chartered Institute of Payroll Professionals).

What should candidates be doing to take advantage of this opportunity?

Experienced payroll specialists with the right skills will find that there’s a wealth of opportunities currently available to them. Those in the early stages of their finance career should give serious consideration to payroll as it offers an opportunity to use numerical and IT skills in a people-orientated role.

Payroll can often be an area of Accounting and Finance that is overlooked, despite it offering just as many opportunities for post graduate qualification, for promotion and for high earning potential as other areas. It offers a viable route for longer term development with the provision of full training and further funded qualifications potentially available.

What should candidates be looking for when considering a new role opportunity?

Consider your fit with the company culture. Yes there are currently genuine opportunities to improve your salary at the moment, but any move should be because it will be the ‘right’ place for you to work and offer you the progression that you are looking for… Don’t just follow the money.

How can employers put themselves in the best possible position to secure the top talent?

Sell yourself as an organisation and what you can offer somebody with ambition seeking strong career development opportunities. Be prepared to move (very) quickly and be decisive; candidates have so many choices and so many options on the table, that a poor process or a slow process means most of the time you will miss out.

Additionally, be open minded to recruiting inexperienced candidates and invest in training and qualifications. The fight for talent is intense for experienced candidates, with prices rising quickly. Investing in new entrants to the market can be a rewarding and cost-effective alternative.

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.