Government efforts to reduce the impact of the financial downturn on UK business have seen billions of pounds pumped into the economy. However, FDs responding to the Baker Tilly survey prior to the latest round of quantitative easing, were largely under whelmed by the State’s efforts. We asked how successful government intervention had been in increasing lending; improving investor/consumer confidence; attracting investment; supporting SMEs; and decreasing legislation.

The presiding view was government action had been steady but unremarkable. There was general support for the action taken to help SMEs and to improve confidence, while measures to improve lending and investment were deemed less successful, a view echoed by a perceived reduction in available credit compared with 6 months previously.

None of the measures called for in October’s FD Perception survey - including a reduction in NI contributions and corporation tax - had been introduced.

“Generally businesses felt government actions on the economy had been largely unsuccessful. Business wanted to see a reduction in NI contributions and tax breaks for capital investment, but instead got a reduction in the rate of VAT which was felt to be largely ineffective.”
Mark Harwood, Head of Corporate Governance and Risk, Baker Tilly