"WE are beginning to see the uncertainty around Brexit hit local business". That is the verdict of the county’s business leader.

Mike Ashton, chief executive of Herefordshire & Worcestershire Chamber of Commerce, which covers Redditch and Bromsgrove, made the statement following the release of the chamber's Quarterly Economic Survey (QES) for the last three months of 2016.

The report found 43 per cent of businesses feeling pressure to raise prices, more than doubling since the June vote. This is mostly attributed to the increasing costs of raw material prices, as well as volatile exchange rates. Cash flow is also becoming a substantial concern, in particular for a number of small and medium-sized business (SMEs) with 20 per cent of businesses reporting a worsening situation.

It found the biggest concerns for business are exchange rates 40 per cent, closely followed by corporate taxation 37 per cent and competition 33 per cent.

The report said corporate taxation has risen "significantly" as a concern since summer 2016, possibly due to businesses being concerned about extra costs which may be inflicted this year.

However, 43 per cent of businesses reported an increase in domestic sales over Q4 (October, November and December 2016) and a third of exporters reported an increase in sales abroad.

The business leader, who will be retiring in March, added: "The number of businesses expecting to raise prices has more than doubled and cash flow poses a real concern.

"However, businesses remain resilient and the outlook for the year remains positive, with the majority of business expecting turnover and profitability to improve."

To combat the rising concerns, the chamber are launching the Chamber Business Manifesto 2017, which contains the organisation's priorities for local and national government,which is launching on February 3 at Worcester, Bosch Group in Cotswold Way.

This event has put this together following consultation and feedback from more than 600 local businesses. To book a free place or for more information email Sophia Haywood, policy executive on sophiah@hwchamber.co.uk.

To view the report, go to hwchamber.co.uk/HWCC/files/38/385234c6-30f1-423d-8666-67625f458885.pdf.