NEW POLL SHOWS THAT BUSINESSES ARE LESS CONFIDENT FOR 2008 AND THAT THE BUSINESS VOTE IS UP FOR GRABS
03/01/08 | 09:26
All questions (below) show that a majority of businesses believe that both the UK and World economies are not going to perform as strongly in 2008 as they did in 2007. In the context of the UK, businesses believe that prices are going to rise and that inflation will be a problem in 2008.
It is also clear that 2007 was a bad year for the Government in the eyes of business, with the majority having less confidence in the Government’s ability to manage the economy and 41% believing that Cameron & Osborne would deal with the economy in a better manner than Brown & Darling.
Commenting on the results of the poll David Frost, Director General of the British Chambers of Commerce, said:
“The volatility towards the end of 2007 has clearly had an impact on business confidence for 2008. The credit crunch, the run on Northern Rock, worries about rising inflation and the let down of the proposed Capital gains Tax reforms have all taken their toll, meaning 2008 is set to be a challenging year.
“It is also clear that 2007 has seen business become more pessimistic in its views of the Government’s handling of the economy. The reaction to the proposed Capital Gains Tax changes has been extremely negative and has undermined much of the good work that has been done by the Government in promoting an enterprise economy.”
ENDS
MEDIA CONTACT:NOTES TO EDITORS:345 firms responded to the poll which was held between December 5th and 20th 2007
The key findings of the poll are:
How do you think the British economy will fare over the next year compared to 2007?
Worse than 2007 - 75%
Better than 2007 - 8%
How do you think the World economy will fare over next year compared to 2007?
Worse than 2007 – 74%
Better than 2007 – 9%
In a year from now do you expect prices generally to have gone up, to have gone down or to have remained the same?
Gone up – 86%
Remained the same – 10%
Gone down – 3%
Do you expect inflationary pressures on your business to increase, decrease, or remain the same over the next 12 months?
Increase – 78%
Remain the same – 20%
Decrease – 2%
Do you have more or less confidence in the government’s ability to manage the economy now, as compared to the beginning of 2007?
Less confidence – 75%
More confidence – 3%
If Britain’s economy were to face significant problems in the months or years ahead, who would you trust most to deal with it in the best interest of Britain?
Brown & Darling – 19%
Cameron & Osborne – 41%
Neither – 30%
The British Chambers of Commerce (BCC) is the National Voice of Local Business.
The BCC sits at the heart of a powerful nationwide network of Accredited Chambers of Commerce serving business across the UK, which employ over five million people.