Nine out of ten businesses (93 per cent) feel that the Emergency Budget was tough but fair, with two thirds (62 per cent) believing that the measures outlined by George Osbourne last week will have a positive effect on their business.
Reed Finance, the senior and executive-level financial recruitment specialist, polled senior finance professionals from the banking sector at its Emergency Budget breakfast briefing on Wednesday 23 June. The results showed that while businesses are largely supportive of the new coalition government’s plans to reduce the UK budget deficit, they do have some concerns about VAT rises and are not convinced of the benefits of changes to national insurance and capital gains tax.
Tim Vye, operations director of Reed Finance, said: “Seven out of ten businesses believe that the rise in VAT will have a negative effect on their business and close to half of businesses (48 per cent) feel that proposed changes in employers’ NI will also have a detrimental effect.
“While the majority of businesses (84 per cent) welcome the government’s plans to reduce non-priority spending, only four in ten are confident that the cuts will be achieved.
One of the headlines of the budget was of course the freeze on public sector pay. We believe this could see an increase in worker migration from the public to private sector, as they seek higher wages to match the increased cost of living.”