Business Survey on Budget Speech

Businesses support Chancellor’s budget

A poll of London firms conducted by ComRes on behalf of the London Chamber of Commerce and Industry (LCCI) has shown that businesses in the capital support the Government’s budget plans.  While the backing has not been as strong as some may have expected, 56 per cent of businesses are confident that George Osborne now has government spending under control, with 36 per cent disagreeing and a further 9 per cent saying they are unsure.

Half of companies based in London (50per cent) say they agree that the Chancellor is on the side of business but 38 per cent disagree, while 12 per cent say they don’t know.

The Chancellor’s changes to the tax system were overwhelmingly popular – 68 per cent approve of the decision to lower fuel taxes, while 62 per cent are pleased with changes to personal income tax.  Closing tax loopholes proved to be a popular move, supported by 74 per cent of respondents, but the most widely approved measure was lowering corporation tax further than expected, with 80 per cent backing this move.

However, the Chancellor’s decision to maintain the top 50p rate of income tax was not popular amongst businesses based in London as this particular issue is one that affects the capital disproportionately.  When asked if the Chancellor’s decision to maintain the 50p tax rate was based on economics or politics, 61 per cent say they think it is a politically motivated move while just 32 per cent think it was to help the UK’s finances.  A further 7 per cent are unsure.

Commenting on the results, Colin Stanbridge, Chief Executive of the LCCI said:

“On the whole we think the Chancellor got it right on budget day.  There was good news on corporation tax and fuel duty and there was a general feeling that the Chancellor is trying to let the private sector flourish to fill the vacuum created by cuts in public spending.  It was nonetheless disappointing that 50p tax has remained unchanged and many feel that he could have gone further still to tackle red tape and regulation.  We now hope this is just the first step in helping businesses drive economic growth in the years to come.”