- By Arthur Le Geyt, Research Manager, Buckinghamshire Business First
- 21 July, 2025
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Buckinghamshire Business First is the primary source of insights from the business coalface. This intelligence is used to ensure strategies and policies are based on robust evidence and to ensure government at all levels is aware of the economic issues facing Buckinghamshire’s communities.
Business Intelligence Summary - June 2025
Local Economic Conditions
Growth-driving sectors
Following the publication of the UK Government’s modern Industrial Strategy, it is encouraging to note that more than 10,000 businesses in Buckinghamshire are actively engaged in at least one of the strategy’s frontier, growth-driving sectors: Advanced Manufacturing; Creative Industries; Clean Energy Industries; Digital and Technologies; Professional and Business Services; Life Sciences; Defence; and Financial Services
Plus, we estimate that over 60,000 people are employed by these frontier industries in Buckinghamshire, with local employment specialisation in life sciences, advanced manufacturing, digital technologies, and creative industries. More specifically, the county has local strengths in key industries such as aerospace manufacturing, film and TV, music and performing arts, management consultancy, and construction.
Unemployment
As of May 2025, unemployment figures reveal a slight uptick. In total, 11,285 residents were claiming benefits, equating to 3.3% of the working-age population - slightly above the regional average (3.2%), but below the national rate (4.2%). The unemployment rate has risen from 2.7% in 2022 to 3.4% in 2024, suggesting a gradual softening in the labour market. More details are available here.
The Buckinghamshire Business Barometer Q2 2025 survey of 103 businesses continues to reflect challenging trading conditions in the county. Nearly half (47%) reported worse-than-usual trading conditions, and 75% experienced increased costs. Although net balances for turnover, profit, and workforce improved slightly, they remained negative.
Effects of policy changes
Policy changes - such as increases in employer National Insurance Contributions (NICs), and the Employment Rights Bill - have led 32% of businesses to report delaying or cancelling recruitment activity. Tariffs on exports to the US are also impacting 1 in 8 businesses, prompting these business to restructure their operations.
READ MORE: Read about the Buckinghamshire Business Barometer results here >
Business Needs and Concerns
A recent engagement session with the Bank of England’s South East Representative provided valuable insights into the concerns of local business leaders.
Key themes included:
- Sentiment and Investment: Confidence remains subdued due to high interest rates, cash flow issues, and limited access to finance. Some businesses are unable to secure overdrafts or face unsustainable lending terms. Construction and real estate firms are particularly vulnerable, with retrofit costs and delayed payments affecting viability. A number of business owners are accelerating exit plans due to financial pressures.
- Labour and Skills: Rising employment costs and wage compression are leading to pay freezes and headcount reductions. Concerns about AI’s long-term impact on skilled employment were raised, alongside calls for agile leadership and workforce adaptability.
- Trade and Tariffs: Exporters in engineering and film sectors are grappling with US tariffs and regulatory uncertainty, with some withdrawing from the US market entirely.
Read the full overview of the Bank of England Panel Meeting held in partnership between Buckinghamshire Business First and the Bank of England.
Business Support Ecosystem
The Race2Space initiative, supported by the UK Space Agency, took place at Westcott Venture Park on Friday 11th July 2025. Over 300 students from 32 universities participated in the world’s largest rocket firing competition. The programme addresses critical skills gaps and diversity challenges in the UK space sector, which employs over 52,000 people but faces talent shortages.
Race2Space offers hands-on engineering experience and promotes inclusivity by encouraging participation from underrepresented groups. The finale and symposium on 11th July brought together academics, government, and industry leaders to celebrate innovation and foster collaboration.
For more information on the initiative, visit the Race2Space website.
Want more research and analysis on Buckinghamshire's economy?
Visit our dedicated Reports and Analysis webpages for the latest insights on the Buckinghamshire's economy and workforce, and the effect of policy decisions on our local business community.
