Three-quarters of Kent businesses polled in a new survey revealed labour costs had increased during the last quarter and overall business confidence has stagnated.

The findings come in the Quarterly Economic Report for April to June of this year and published by the Kent Invicta Chamber of Commerce and British Chambers of Commerce.

It discovered 74% of firms in the county said labour costs were increasing.

In addition, it warned business confidence had stagnated after showing signs of recovery, stating “both the indicators of business confidence showed significant falls in Q2 2023, until last quarter where there were signs of recovery, coming to a halt this quarter”.

Overall, the survey - which includes nationwide data - found businesses remain positive about their turnover and profitability expectation despite a slowing down or slight decrease in domestic and export demand compared to Q1 of 2024.

Explains Tudor Price, chief executive of the Kent Invicta Chamber: “The positive to note is that manufacturing seems to be picking up a little on domestic demand, but export remains stagnant.

“The pressures felt by business remain high, with inflation impact reducing significantly but remaining the main concern and the impact of corporate taxation and competition increasing.

“The cost of doing business remains a major issue for businesses, with price pressures felt by businesses around labour and utilities costs in particular.

“These issues, raised by our members and reflected in the QES data are some of the key issues that Kent Invicta Chamber, through the British Chamber of Commerce, has been putting forward at Westminster with many elements being picked up by the new government.”