More than three quarters of bosses have low confidence in the UK business environment, according to a survey by the Adam Smith Institute (ASI) think tank.
The ASI Business Confidence Survey took the temperature of 192 business leaders, who between them represent 100,000 employees – from sectors including finance, retail and manufacturing.
It paints a “stark picture” of the private sector, with just 3.8% of the respondents having ‘high or very high confidence’ in the UK as a place to do business.
When asked to give a ‘Business Confidence Score’, ranked from 1 to 10, the average score was just 2.6.
Levels of taxation was the leading issue for businesses, with 75% stating that high business rates were a major concern to their organisation.
Taxes on outputs, such as VAT and duties on goods, was a concern for 59% of those surveyed.
Sam Bidwell, the ASI’s director of research, said of the data: “The Government has said that growth is their number one mission – but it’s impossible to achieve this without a booming private sector.
“It is the business owners and the entrepreneurs who create wealth and prosperity, not bureaucrats in Whitehall.”
Red tape concerns
49% of those surveyed expressed concerns about the impacts of government regulation – as the ministers prepare to put a major package of employment legislation before the Commons.
On Monday, a separate poll revealed that bosses feared the government’s upcoming workers’ rights legislation more than the National Insurance hike.
Andrew Griffith, the Shadow Business Secretary, said that the data “[comes] as no surprise to anyone who actually understands how business works.”
“Fresh from a summer of trash-talking the economy and driving down consumer and business confidence, the Government’s Budget of Broken Promises is now taxing and regulating business into oblivion.”
‘Lawfare’ is also a significant worry for a number of businesses, with the ASI reporting on the threat of the UK’s class-action boom on private sector investment.
Griffith added: “It’s not too late for Rachel Reeves to admit her mistake and backtrack on her damaging NICs hike and shelve the anti-growth Employment Rights Bill before more businesses are driven to the wall.”