Business confidence in the UK’s economic outlook has been boosted significantly by the Budget, according to a survey of 620 members of the Institute of Directors (IoD). 58 per cent of company directors say they are now more confident about the long-term economic outlook of the economy as a result of the Budget, with only 9 per cent feeling less confident. The poll also reveals that a large majority of IoD members believe the Government’s economic leadership is sound and that the Chancellor’s Budget will have a positive impact on their businesses, as well as the wider economy. Key points from the survey of 620 company directors Business confidence in the Government’s economic policy:
•58 per cent are more confident about the long-term economic outlook of the economy as a result of the Budget, with only 9 per cent feeling less confident. •69 per cent believe George Osborne is doing a good job running the economy as Chancellor. 14 per cent do not think George Osborne is doing a good job.
Positive impact on wider economy:
•70 per cent believe the Budget will have a positive impact on the economy, with only 6 per cent believing it will have a negative impact.
Positive impact on IoD members’ companies:
•55 per cent believe the Budget will have a positive impact on their business, with only 8 per cent believing it will have a negative impact.
Views on some specific Budget measures:
•93 per cent believe that reducing the main corporation tax rate to 26p this year and 23p by 2014 will be positive for the economy, with 74 per cent stating that it will be positive for their businesses. •43 per cent think the increase in the lifetime limit for entrepreneurs’ relief from £5m to £10m will be positive for their businesses. •48 per cent think the improvement to the capital allowances for short-life assets will be positive for their businesses. •81 per cent think that increasing the limits for investment under the Enterprise Investment Scheme is a positive step. •65 per cent think moving an increase in fuel duty to an increased tax on North Sea oil production when the oil price is high is a positive step.
Commenting on the survey, Graeme Leach, Chief Economist and Director of Policy at the Institute of Directors, said: “The economic recovery is fragile so it is good news that business leaders have responded so positively to the Budget. At a time when confidence could make the difference between recession and recovery, the IoD’s Policy Voice survey suggests that the Budget has improved the outlook for business investment. And at a time when international developments are making people worried, the Chancellor has helped steady nerves at home.”
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