FORTY per cent of Cumbrian business suffered a financial hit from last winter's floods and the ensuing disruption, new research reveals.

This is one of the findings of a survey of more than 2,000 Cumbrian businesses that is helping to shape economic development strategy for the county.

The survey, conducted by BMG Research, on behalf of Cumbria Local Enterprise Partnership (LEP) covered a range of economic issues, with a strong emphasis on flood recovery since the storms and extreme weather events of last winter.

It has also included employer feedback on trading and investment, business constraints, employment and turnover growth, and skills gaps and shortages.

Telephone interviews were conducted with 2,186 employers between November 2015 and May 2016, with the survey weighted using Office for National Statistics data to ensure it was fully representative.

Cumbria LEP director Graham Haywood said: "It’s important that we regularly undertake these type of business-led surveys so we can ensure that our own activities are responding to the needs of local business.

“Clearly in 2016, the focus has been on flood recovery and of course future flood resilience.

"The survey shows that around two in five businesses in Cumbria suffered financially from storm and flood damage.

“Cumbria LEP has committed more than £3.5m for business flood recovery grants and £5m is also being spent on flood protection as part of the Ulverston infrastructure programme.

“Our Growth Deal 3 funding bid for government includes a further £25m for a Flood Resilience Programme to protect 5,337 businesses and homes, safeguard jobs and lever in additional investment.“

The survey showed that there was optimism in business outlook, with around a third of respondents anticipating higher levels of domestic orders, profit margins and cashflow.

Mr Haywood added. “One of the most positive aspects to emerge from this survey is the general health and growth direction of our businesses, with 34 per cent experiencing growth against 27 per cent in 2013.

“Around one in five businesses now sell or provide services to organisations in the nuclear industry, increasingly significant as major infrastructure investments such as Moorside come on stream.”

Little change in trading and investment habits has been reported since the last like-for-like survey in 2013, with the majority of decision-making within Cumbria’s businesses taking place within the county and with private sector businesses continuing to be largely focused on the local market and the visitor economy.

Although domestic customers remain important, there is a trend towards more businesses extending the geographical range of their markets, with fewer being 100 per cent reliant on Cumbria.

Some 15 per cent say they trade overseas with the EU.

When asked to consider barriers to business performance and efficiency, respondents cited the economy, regulations, access to or speed of broadband, taxation, VAT and cash flow ahead of other issues such as planning, transport infrastructure and skills.

Four-fifths of all businesses and organisations reported no change in the size of their workforce since the same time last year, while 12 per cent inreased the size of their workforce, and nine per cent reduced staff.

Turnover growth for the county remained neutral as well, with a quarter of private sector businesses that have been trading for at least a year reporting an increase in their turnover in the last year, whilst 26 per cent reported a decrease.

A third of businesses had tried to recruit staff in the last 12 months and more than half of these experienced difficulties filling job vacancies.

For more information about the survey, click here