Survey Reveals UK Business Leaders Support Short Term Pain for Long Term Stability
The majority of UK business leaders expect the coalition Government to create a more favourable environment for British companies and agree that austerity measures taken now will help engender a more competitive business environment in the years to come, according to a new survey* by Barclays Corporate, the corporate banking arm of Barclays Bank PLC.
The Post Election Survey found that the vast majority of respondents (86 per cent) expect the coalition Government to create a more favourable business environment in the long term, although this dropped to 59 per cent when questioned about short term prospects. More than three quarters of business leaders (76 per cent) expect better business conditions within the next three years.
An overwhelming majority (87 per cent) of respondents were in favour of spending cuts by the Government, as opposed to increased taxes, in order to reduce the national deficit, and two thirds (67 per cent) believe these cuts would have only a mildly negative impact on their business. Nine per cent of respondents believe the spending cuts would have a stronger negative impact on their business, whereas 15 per cent believe there will be no impact whatsoever.
The survey also revealed the expected impact of cuts on businesses would be spread across a wide range of Government departments, with particular concern around transport, higher education and Regional Development Agencies.
Commenting on the survey findings, Ian Stuart, Managing Director, Barclays Corporate, said:
“This survey shows that UK business leaders are pragmatic about the need for deficit reduction, recognising that there will be pain inflicted by public spending cuts, but that this is a price worth paying for long term stability and profitability. No one is expecting a quick fix. Businesses believe that these measures will eventually lead to a more favourable operating environment for UK companies and increase the UK’s competitiveness globally.”