A survey of 150 business leaders from the London Chamber of Commerce and Industry (LCCI) has revealed major fears over the triple shock of the government’s Autumn Budget measures, lower than expected growth, and the Employment Rights Bill.
In a snap survey of business owners, 86% of them SMEs, 85% of businesses polled revealed that they think economic growth won’t happen under this government and 86% reported feeling that the government isn’t currently listening to the concerns of the business community.
This combination of damaging measures has led to 70% stating that they lack confidence in their own business growth when compared to last year.
In particular, 74% stated that the rise in Capital Gains Tax was going to have a negative or very negative impact on their business.
The survey also revealed that business leaders understand the government’s desire to ensure stable public finances but believe different measures should be pursued to achieve this. 54% believe government spending cuts are the best way of stabilising the finances, with 26% supporting a change in the fiscal rules. Only 5% believe that the government current plan of raising taxes is the right approach to achieving long-term growth.
Karim Fatehi OBE, Chief Executive of the London Chamber of Commerce and Industry said: “This survey paints a stark picture. Businesses do not have confidence that the government can deliver economic growth if it continues along a road of tax hikes and employment regulation. They should listen to businesses and urgently change course.
“Businesses support the government’s drive for economic growth, but you don’t achieve growth by hammering employers with tax increases and regulation that makes it harder to hire people. Businesses, especially SMEs, have no choice but to pause investment plans, freeze hiring, and reduce planned pay rises if they want to survive. Unless the government provides support to the business community, London will be unable to provide the productivity and investment that will help to grow our economy and benefit us all.”
