The overwhelming majority of UK business leaders back the coalition’s proposed spending cuts are pitched at the right level nand many think there may be more to come.
The Post-Comprehensive Spending Review survey, carried out at Barclays Corporate events throughout the UK, found 80 percent of respondents supported the cuts, but a similar number (81 per cent) believed private sector job growth will not compensate for public sector job losses, resulting in an overall shortfall in UK employment.
More than two thirds of respondents (69 per cent) believe the UK will not experience a double dip recession. Sixty per cent of those surveyed also expect some opportunities for their business as a result of the cuts, including 8 per cent expecting ‘significant’ opportunities to arise. Additionally, there is a strong belief amongst respondents (80 per cent) that the coalition is creating a more favourable environment for businesses in the long term.
Ray O’Donoghue, managing director of Barclays Corporate in the Midlands, said: “The sense we’re getting from businesses is that they are fully aware of the negative impacts the cuts may bring and are preparing for this. But businesses are also eager to identify and capitalise on opportunities the reduction in certain public sector services may offer.”