Business leaders show overwhelming support for the Coalition and cuts
A massive 89 per cent of UK business leaders agree that the Government’s policies will improve the state of the British economy according to the 2010 Captains of Industry survey from Ipsos. There is also strong support for the Coalition’s cuts programme, with 75 per cent saying that the deficit needs to be cut quickly, which increases to 85 per cent of FTSE 350 respondents. This year the captains of British industry are the most positive since 2006 about their organisation. 60 per cent think business for their own company will improve in the next year, while only seven per cent believe it will get worse. Ben Page, chief executive, Ipsos, said:
“This time last year 70 per cent of business leaders disagreed that the Labour Government’s policies would improve the economy so it is fair to say that business leaders prefer the coalition’s economic plan. Many in the private sector believe that they have already had their recession and to enable them to return to more profitable times it is necessary for the public sector to face up to a different economic environment.”
Since the recession businesses have been focusing on cutting costs. However, in 2011 the biggest changes will be in the area of new product development according to 23% of respondents. Other big changes for the next 12 months will be shifting with consumer preferences and utilising improved technology, suggesting that businesses won’t be shrinking in order to survive, but will instead be looking at how to grow.
Challenges facing business The most important issue facing businesses today continues to be consumer demand according to a quarter (25 per cent) of business leaders. There is also concern with regards to the levels of regulation, with 19 per cent saying it is their biggest challenge. Almost three quarters (74 per cent) feel that the level of regulation affecting business in the UK overall has increased over the last twelve months, while 86 per cent believe that level of regulation is harming the British economy. There are mixed views with regards to immigration in the UK. Around half (48 per cent) of business leaders agree that immigration restrictions are making the UK economy less competitive, while 24 per cent disagree and 27per cent say that it has no difference. Commenting on the findings, Secretary of State for Work and Pensions, the Rt Hon Iain Duncan Smith said:“This research by Ipsos confirms that key business leaders overwhelmingly support the Coalition's economic policy. It is crucial that we tackle the deficit and put Britain on a stable fiscal footing and this view is shared by the private sector. As the economy grows we need to ensure that Britain has a workforce that is ready and willing to work, and that is why I am pressing ahead with whole scale reform of the benefits system and investing billions in Britain's biggest welfare to work programme.”Technical note Established in 1981 and conducted on an annual basis, the Ipsos Captains of Industry survey is the authoritative view of senior business opinion in Britain today. 102 interviews were carried out with respondents selected from the FTSE 350, and top 100 by capital employed. Respondents are Chairman, CEO, MD/COO, FD or other board directors.
