BUSINESS confidence has fallen in Yorkshire and economic uncertainty remains the biggest threat to firms, according to the latest Business in Britain report from Lloyds Bank.

The report’s confidence index - an average of respondents’ expected sales, orders and profits over the next six months – fell to 17 per cent, down from 32 per cent, the survey’s score in September 2016.

Yorkshire firms are feeling more optimistic than London businesses, but fall behind the north-east in terms of confidence.

The most commonly identified threat chosen by Yorkshire firms in the next six months was economic uncertainty (29 per cent), followed by weaker UK demand (18 per cent) as firms wait for further details of Britain’s EU exit.

Firms also cited political uncertainty (nine per cent), weaker overseas demand (six per cent), input costs (six per cent), access to skills (six per cent) and regulation (six per cent) amongst the biggest threats to their business.

Leigh Taylor, regional director for SME Banking in Yorkshire, Lloyds Banking Group, said: “Business confidence in Yorkshire has dropped significantly since September, a sign that we are entering 2017 with an uncertain business outlook.

“Firms are worried about economic uncertainty and falling demand, which we may see addressed in the coming months as the UK’s exit from the EU becomes clearer.”