A leading regional accountancy firm is today calling for further support for businesses across the North East, as a new survey reveals that a majority of accountants nationwide believe businesses need more support from government and the banking sector.

Tennick Accountants was founded by Graeme Tennick in 2012 and now supports more than 200 businesses across the North East from its base in Cramlington.

Commenting on the state of regional business as we look towards 2025, Graeme Tennick said:

“The last few years have been difficult for many businesses across the North East as interest rates and low consumer confidence have impacted the local economy. As such, the sentiment I’m getting from my clients at the moment is caution, with businesses in the region putting off business decisions around hiring, expansion, M&A and investment.”

The comments come following the recent Autumn Statement which has left many businesses feeling nervous about increases in National Insurance and the minimum wage. A national survey of accountants undertaken by leading business bank, Allica Bank, reveals that 21% of accountants believe there’s more the government could do to support businesses.

Responding to the survey, undertaken in the weeks following the Autumn Statement, nearly a third (29%) of the 74 accountancy firms polled also believe the policies announced in the Autumn Statement will make business harder. While 45% believe that businesses are not getting the support they need from the banking sector.

Recent research from Allica Bank backs this up. Its Great British Savings Squeeze report has revealed that UK SMEs lose out on £9 billion a year in savings interest because banks aren't offering them the interest rates their hard work deserves. The North East’s 72,235 SMEs miss out on £64 million a year – working out as £2,268 per company – just on their instant access savings thanks to keeping their cash with the big banks rather than the best option available.

Graeme Tennick continued: “Businesses should remember however that, even if they feel cautious about the future, there are still decisions they can make that can help them succeed. Small steps can be taken, for example switching business bank, to get a better deal or speaking to your accountant about long-term business goals and looking at ways in which parts of your business can be automated, to free up human time for more complex, revenue driving tasks.”

Despite the headwinds, accountants remain broadly positive about the future of British business. 42% of accountants feel somewhat optimistic about business in 2025, while 9% feel highly optimistic. Nevertheless, 68% of accountants believe that the government could make life easier for businesses by streamlining communication with HMRC. While 40% would like to see the government reduce the regulatory burden and 18% believe the tax code should be simplified.

Sophie Hossack, Head of Partnerships at Allica Bank said: “Allica Bank is dedicated specifically to supporting established businesses across the UK – that’s those SMEs with between 5 and 250 employees. This latest research highlights the economic headwinds that these businesses across the North East are facing as we look toward 2025. Despite the challenges, it's encouraging to see accountants remain optimistic about the future of British business.

“The established SME economy is the real economy and, as trusted business advisors, accountants have a huge role to play when it comes to helping businesses navigate the challenges and opportunities ahead. The financial sector has its role to play too in giving businesses the support they need to grow and invest.”