​TAKING BACK CONTROL

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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This is (probably) my last comment piece for the year. And what a year. Normally, as we approach the wind down to the festive break I would be in a reflective mood; looking back at what the last 12 months have offered, lessons learned, key moments which have shaped our decision making and an optimistic look ahead to what the coming year may bring (*spoiler* my optimistic look ahead at the end of last year did not foresee a 2020 quite like this!).

As for so many, this year has been very much a rollercoaster but there’s one conversation – or a theme that has ran through many of the conversations that I have had with clients and candidates – that has really stood out. Control.

I remember fairly early on during the first lockdown, speaking with a business contact whom I have known for quite some time. They, like several others at the time, asked me what advice I would give as they looked to navigate the tricky circumstances that this unprecedented situation had placed us in. My words of wisdom – and I paraphrase a much more detailed response – centred around “don’t worry about what you can’t control”.

These conversations prompted me to recall a book which I have, over the years, referred back to many times: Understanding Organisations by Charles Handy. Within this, there was a specific paragraph which resonated with me at the time and, as we find ourselves in a position where, thanks to some extremely talented and dedicated scientists, the much-welcomed news of a vaccine has seen the first glimpses of light begin to appear at the end of what is a very long and dark tunnel.

This particular paragraph dealt with the notion that the human brain can only cope being unable to do something for around three months – after this point our natural instinct is for our brain to convince us that the reason we are unable to do a particular task is because we can’t do it and that ‘we are the problem’.

In recruitment terms, I’ve found this goes someway to explain why when people start a new job there’s a point – three months in – that if they feel they haven’t quite got to grips with all aspects of their role they think the position/company/industry isn’t for them and start to consider a change; in effect their confidence has gone. In actual fact, it’s probably closer to the six month mark that new team members really start to turn the corner and feel confident in their role and as a manager or business leader it’s imperative to recognise this and work with employees to dispel any doubts about their ability that may start to creep in during these crucial early months.

The reason our brain behaves in this way is because there’s only so long that people can cope with uncertainty. And this year, if there’s one thing that we have been certain of, its uncertainty. Back in the early days – March, April – organisations and individuals went into survival mode; there was a siege mentality as we faced each day, uncertain about what lay ahead. Initially, that collective ‘we are all in this together’ spirit was invaluable but as time has gone on, fatigue has started to set in and a continued uncertainty becomes very difficult for people to cope with and they want to take back (at least) some control.

To be realistic, there are some sectors which throughout this year have been – and are still – very much at the mercy of the restrictions that great swathes of the country are placed under. For them it is about nothing more than survival. But for others, who as I said, can start to very tentatively look ahead with a glimmer of hope and optimism, now is the time for these organisations to make positive moves away from survival mode and start to get on the front foot and plan for what lies ahead.

If we go back to the idea that our brains can only cope with being unable to do something for three months, this kind of positive shift in mindset is essential for the morale and well-being of staff that have be wrapped up in uncertainty and a lack of control for the last nine months. Even the most tentative of steps that begin to make the move away from ‘holding the fort’ to ‘planning for the future’ will be decisive in recapturing hearts and minds.

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.