Why it matters: The survey, covering October to December, found that 83% of firms cited corporate taxation as a concern, up 16 percentage points. Inflation pressures were reported by 56% and business rates by 30%. The sharp rise in taxation concerns follows the Government's £26bn tax-raising Budget last November, which was criticised by Suffolk businesses for lacking "strategic direction."
The findings confirm warnings from Suffolk businesses in December that the Budget would freeze investment and hiring decisions – a freeze that has not thawed as businesses enter 2026.
The details: One of the starkest findings is the export crisis. Services sector orders and sales have been negative in all but five quarters since the pandemic began – suggesting a long-running structural problem, not just cyclical weakness. Manufacturing exports continue their own "dismal run."
A negative balance indicates that more businesses reported worsening conditions than improvement. Manufacturing firms recorded steep declines in domestic orders (-38%), investment in plant and machinery (-34%), domestic sales (-32%) and cashflow (-29%). The service sector reported confidence in profitability at -28%, export orders at -21% and investment at -20%.
The only positive indicators were both related to hiring, with more companies attempting to recruit and fewer finding difficulties filling vacancies. The pattern is national: the CBI reported business confidence at -30% in December, with investment forecast to contract 0.4% in 2026 – the first decline since Covid.
What they're saying: Doug Field, chair of the Chamber's Economy Group, said the overall picture remains "alarmingly fragile" despite modest quarter-on-quarter improvements in some service sector measures. "Taxation is a key burden for businesses. We need a tax system that is simpler and fairer," he said.
Paul Simon, the Chamber's head of public affairs, said: "That most of the indicators measured are now flashing red – in negative territory and getting worse – is proof positive that urgent and concerted action is needed."
The big picture: In December, Gipping Construction told Ipswich.co.uk the Budget had "done nothing to address the major issues." Two months later, the firm confirmed "the wait continues in most cases" for investment and hiring decisions, calling for National Insurance contribution reversals.
Atwells Solicitors reported hiring decisions are "definitely delayed as a result of higher costs, including NI and the question of whether AI could be used instead." The firm added that confidence feels fragile, though it is "seeing a pick up following an interest rate reduction and the Budget not being as bad as expected." Other investment decisions "in the property sector seem to be back underway."
Greg Newman, co-founder of Lanman Solar, said the company "finished 2025 strongly and have come back into the new year with healthy enquiry levels and confirmed orders." He added that "demand in renewables locally remains robust" and the company is continuing to hire across operational and office-based roles.
Melissa Neisler Dickinson, owner of the Menopause Vitamin Company, is taking a "go big or go home approach" in 2026 after sales increased 20% on the prior year. "I have played safe long enough. We're attending major shows like The Ideal Home Show and Pause Live and launching a new product. We're moving forward and reinvesting our profits," she said. However, she noted spend at November and December events was down around 50%, reflecting wider consumer caution despite increased footfall.
Suffolk's struggles mirror wider trends, with graduate job vacancies down 45% year-on-year and unemployment forecast to rise to 5-5.5% in 2026.
What's next: The Chamber is urging the Government to use the Spring Statement to reverse recent tax increases and accelerate infrastructure upgrades, including improvements to the A14 and key rail junctions at Ely and Haughley. Field said the Government must "set out a clear plan for business tax cuts, using the 2026 Budget to roll back the hikes from 2024."
Suffolk firms are specifically calling for the reversal of National Insurance changes, which increased employer contributions from 13.8% to 15% and lowered the threshold from £9,100 to £5,000, alongside reconsideration of business rates changes that reduced small business relief from 75% to 40%. The tax burden is projected to reach 38% of GDP by decade's end – a record high – with Resolution Foundation analysis finding a worker on £35,000 will be £1,400 worse off by 2030.
For context: The Budget is set to raise £26bn annually, hitting businesses immediately through higher National Insurance contributions (from 13.8% to 15%) and lower thresholds (from £9,100 to £5,000). Yet three-quarters of the total tax package will not take effect until after April 2029. That gap between immediate pain and delayed implementation may explain why firms are freezing decisions now. The Institute for Fiscal Studies warns back-loaded plans like this "don't actually turn out the way you planned."
The bottom line: Suffolk Chamber is calling for urgent action in the Spring Statement, warning that business confidence remains "alarmingly fragile" and investment is still frozen across the county. The data proves what local firms predicted: the Budget has paralysed decision-making, with 83% now citing taxation as their top concern.
Without tax reversals and infrastructure commitments, the Chamber warns the current freeze will become permanent retreat. Firms aren't reassessing – they're still waiting.
