A recent straw poll* conducted by business finance provider Bibby Financial Services shows that the majority of UK firms feel the new coalition Government will improve the outlook for businesses in the UK.
With the emergency Budget due to be announced on Tuesday, almost 90 per cent of the firms surveyed by the invoice finance provider feel that the recent switch in leadership will bring about an improvement in conditions for businesses, despite public sector spending cuts and an increase in National Insurance being high on the agenda.
Out of all of the parties, the Conservative party (54 per cent) was cited as having the best manifesto for small and medium-sized businesses, with Labour only drawing 14 per cent of the vote. In addition, 31 per cent of businesses feel the Bills announced in the Queen’s Speech, such as the Government’s commitment to tackling national debt, will have a positive effect on their fortunes over the forthcoming months.
Edward Rimmer, UK chief executive, Bibby Financial Services, said: “In spite of the tough measures being introduced by the new coalition Government to tackle the national deficit, the businesses surveyed in our poll feel that the coalition will bring about an improvement in trading conditions in the long term.
“In order to start reducing the nation’s £166 billion deficit, the Government is going to have to make some serious cuts to public expenditure, which could have negative ramifications for those businesses which are dependent on public sector contracts.
“Tuesday is a crucial day for UK firms, and businesses must ensure they are tenacious and prudent as public sector cuts take effect. However, these businesses feel they are in safe hands, and it appears that many are looking forward to the future with a sense of cautious optimism.”
Posted on 22 June 2010