Economic outlook still tough for businesses in Lincolnshire

We're hearing many businesses in Lincolnshire are looking at cutting back with some considering price rises.

A lot of firms will be impacted by higher national insurance contributions from April.

Last week chancellor Rachel Reeves tried to boost business confidence by announcing infrastructure projects.

Whilst that's been welcomed by many businesses it doesn't address their short term issues which has been causing problems for a lot of them.

There are increased operating costs, increased difficulty of sourcing and keeping staff

We've been speaking to Katrina Pierce from the Federation of Small Business in Lincolnshire.

She says Rachel Reeve's announcement last week is welcome but firms are facing many challenges.

"Hearing that confidence call from a small business owner is heartening but at the same time it needs to be met with the reality of what they're facing."

"There are increased operating costs, increased difficulty of sourcing and keeping staff, volatility of prices of most of the things they source and increasing regulation."

"In the short term what you might see is a little bit of that price volatility."

"Businesses have high operating costs to meet and from April they will increase even further."

"They have to find that money from somewhere to pay their staff and pay the expected rate - they have to find that income ."

In the longer term what I really hope what we will see is a boost in infrastructure

"That could mean slight increases in what they source in the shops - in services and in goods."

"There's already some legislation on the way - the employment legislation."

"There's some challenges in the way with meeting national insurance contributions."

"We need to make sure the Government is giving a consistent approach - we need that rallying call for growth."

"In the longer term what I really hope what we will see is a boost in infrastructure."

"That will benefit residents as well as businesses."

"That's travel, roads, broadband - all of that kind of thing that the UK economy is now increasingly dependant on being in good shape."

"We need businesses and residents to both benefit from that."

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