More than two-thirds (67%) of companies are concerned about a government led by Andy Burnham, a snapshot survey revealed today.
DJH’s Future of Business report, which took the pulse of 200 owners from across the UK, paints a picture of further uncertainty with most owners sceptical about the prospect of growth under the new Prime Minister.
When asked about their biggest concerns, three quarters of firms are worried about a rise in taxation, with nearly half (46%) viewing more red tape as another significant barrier to growth.
The potential for a Number 10 in the North generated a divided response – 38% were against, 31% in favour and 31% remained neutral. Tellingly, more than half of firms (52%) would welcome a ‘snap election’.
There is also a lack of appetite for any of the potential new Chancellors. Wes Streeting scored highest (13%), followed by Pat McFadden (9%) with Shabana Mahmood and Ed Miliband polling 6% and 4% respectively. Apathy was the biggest winner with 42% having no preference.
“It’s clear from our latest report that Andy Burnham has work to do to convince a somewhat ‘sceptical’ business community that he is the right man to take the economy forward,” explained Scott Heath, CEO of DJH.
“Business owners from across 15 different sectors gave us their opinions. 58% of them cited the rise in National Insurance contributions as having the biggest impact on their operations and the feeling is that this could get worse with many of them fearing future tax increases.”
He continued: “Companies are telling us loud and clear that stability matters more than new announcements, they want less red tape and rising employment costs are becoming a bigger growth constraint.
“They do agree that there is an opportunity for regional growth and that is reflected in the creation of an industrial strategy in all regions being the least unpopular single option among a largely unconvinced business base.”
The DJH Future of Business survey also reveals an unshakeable resilience against leaders and their management teams.
Despite growing economic and political uncertainty, 38% of companies reported an increase in turnover, with one fifth taking more people on to cope with growth.
Two in five businesses (40%) are also still planning to invest in equipment, premises, AI or technology to boost growth.
Scott went on to add: “This suggests a two-speed economy is emerging. Growth has not disappeared, instead it is becoming more selective and sector-dependent, with management teams increasingly focused on efficiency, productivity and resilience rather than expansion at all costs.
“Businesses clearly view taxation as a growing challenge, particularly National Insurance contribution increases and uncertainty around future tax policy. If Andy Burnham wants to turn the scepticism into optimism, there are some decisions he could make here to unleash the full potential of UK business.”
Eric Charlesworth (Electrical Contractors) was one of the companies who took the snapshot survey. Director John Charlesworth concluded: “To grow the economy and generate the wealth our country needs the government must stop loading us with additional costs whether that is taxation or legislation. We want to expand and increase profit and when doing so will increase our contribution to the economy.”
DJH is a fastest growing accountants and professional services group, employing over 850 people at 20 offices across the country.
For further information, please visit www.djh.co.uk or follow the company across its social channels.