South West business owners ‘facing biggest trading challenges since Covid’

South West business leaders are facing the toughest trading conditions in more than five years, warns local business expert Peter Hill of Plymouth accountancy firm Wilson Partners.

Peter describes a frustration among owner-manager businesses as they feel under fire from all directions. 

Whiplash from Trump’s on-again off-again tariffs, plus soaring energy costs and sky-high materials prices caused by wars in Ukraine and the Middle East are also depressing business confidence. Add in the uncertainty over the UK economy and a Government needing to raise taxes and repeatedly U-turning on key issues, and it is no wonder business owners are feeling isolated – and not feeling like the backbone of the economy as they should.

While the initial impact of the pandemic upon businesses was a huge concern, Peter saw many clients react energetically to the challenge, innovating new products and services, updating technology and fighting the common enemy of Covid.

But the uncertainty of the current volatile business climate is causing leaders to “drive companies with the handbrake on”, warns Peter. “A volatile cocktail of challenges facing business owners in the South West is creating a sense of uncertainty that is hindering decision-making.

“There is a sense of frustration that many years of hard work may be undermined by events outside their control. Many of these businesses are owner-operated and they’ve worked really hard on their company for 20, 30 or 40 years. 

“Decisions by political leaders at home and abroad are really impacting on their day-to-day business. They don’t want to leave all their chips on the table, or see the tax man take most of it. For many, the changes to the Inheritance tax rules have been the final insult.

“For about a decade we have seen many good accounting firms shrink the services they were willing to provide in the South West – based on a fear of HMRC challenge, the cost of the technology needed or the challenges of recruiting the high calibre team to deliver it. 

“Big firms are focused on their huge clients, and many businesses are finding it increasingly difficult to find good advisors with the full range of services. 

“New clients often complain that their previous advisors were passive, only answering questions when asked, rather than putting forward ideas and suggestions – or even offering no advice beyond the basics. One client told us that their previous accountants actually said, ‘Please, go away and don’t call us until next year’s accounts are due!’

“Our role is to help businesses regain that confidence, by protecting their wealth, making sure their business is structured properly, minimising the tax drain, and helping them to drive profits and business value. You need an advisor with access to the full range of services and who is willing and able to deliver practical, cutting-edge advice.”

The partnership between Wilson Partners and local accountants Mark Holt & Co, which has served Plymouth businesses for more than 38 years, is now completed, with adoption of the Wilson Partners branding and aligning IT infrastructure.

This closer alignment means clients will have easier access to the extensive resources, expertise and infrastructure of Wilson Partners, a leading high-growth accounting, tax, and corporate finance group, while still experiencing the personal attention from all the existing partners and team. The combined firm employs more than 235 staff, and will offer a broader range of services, including enhanced audit, tax, corporate finance and advisory capabilities.