MORE than a quarter of Yorkshire businesses have rewarded their staff with pay rises over the last year, figures have revealed.

The Close Brothers Business Barometer survey, which canvassed small and medium-sized firms from various sectors, showed more than half the increases were in line with inflation, while 31 per cent were above the inflation rate.

Close Brothers Asset Finance chief executive Mike Randall said: “It’s encouraging to learn local employees are beginning to see an increase in their pay packets and hopefully this is a sign things have begun to pick up.”

The survey also showed 12 per cent of Yorkshire firms expect to give their staff a pay rise within the next year, but also said one in ten businesses had been declined bank loans and 14 per cent had been unable to follow opportunities for growth because of a lack of funding.