New survey finds Peterborough employers adrift in 'stagnant' economy ahead of New Year drive for growth
Wealth-creating employers in Peterborough say they are battling a ‘stagnant’ local economy with many struggling to grow sales and others unable to find skilled staff.
These are just some of the grim findings that appear in the latest quarterly survey of the Peterborough economy carried out by Cambridgeshire Chamber of Commerce.
But they come just weeks before local business and political leaders gather for a New Year Peterborough Growth Summit that it is hoped will sow the seeds for an economic revival across the city and the surrounding area.
Charlotte Horobin, chief executive of Cambridgeshire Chamber of Commerce, said: “The latest data highlights a stagnating local economy, where persistent cost pressures, high taxation concerns and skills shortages are preventing businesses from investing and growing.
While our findings reflect the national picture of weakening confidence, they also show that some challenges, particularly around tax and recruitment, are being felt more strongly by businesses in our region.
"Unlocking growth will require coordinated action to support employers, improve skills availability and restore confidence.”
The principal finding of the survey is that economic activity remains largely stagnant with confidence subdued and cost pressures - particularly taxation - weighing heavily on firms.
Just 26 per cent of businesses reported an increase in UK sales in the last three months of 2025.
30 per cent saw a fall in overseas sales, highlighting continued weakness in international demand.
68 per cent of business leaders say they are operating below full capacity, which reflects a lack of strong growth drivers as firms look ahead to the new year.
Recruitment challenges also remain a defining issue for local employers.
While 58 per cent of businesses attempted to recruit during the quarter, 78 per cent experienced difficulties, particularly in skilled manual, technical and professional roles.
Connor Butler, engagement manager at the Chamber, said: “Recruitment difficulties remain a major barrier for local firms, even as overall economic activity remains subdued.
"This reinforces why employer engagement is so critical, feeding real business insight into skills planning and ensuring that training provision reflects what businesses actually need.
In a bid to breathe new life into the economy, entrepreneurs, business chiefs and political and education leaders will host a Business Growth Summit in Peterborough on January 30 at ARU Peterborough.
Their goal is to harness the momentum in the city generated by the start of works on the £65 million Station Quarter regeneration, £20 million funding for a new swimming pool and sports quarter, the success of ARU Peterborough, the opening of the Centre for Green Technology at Peterborough College and the opening of a Youth Employment Hub.
New figures show that the city is home to more than 7,800 businesses with the numbers growing markedly over the last 10 years.
The growth summit will feature a range of guest speakers including Sophie Dickens, director of commercial agents Tydus Peterborough, Darren Roe, managing director of Stagecoach East, Rob Facer, founder of Barnack Estates, Rachel Nicholls, principal and chief executive of Inspire Education Group and Pep Cipriano, chief operating officer of Peterborough Positive plus the city’s MPs, the Peterborough City Council leader and the mayor of the Combined Authority.