BBC Survey Shows Businesses Back Budget
The British Chambers of Commerce (BBC) released figures from a survey that shows a majority of British businesses back the emergency Budget. A reported 64 per cent support a balance between spending cuts and tax rises even though they expect to be harmed by the measure.
The Monthly Business Survey revealed that two thirds of the businesses believe the cut will affect their profits negatively. One half said they would suffer from a fall in consumer demand. Thirty per cent thought they would suffer due to public sector cuts. David Frist, direct general of the BBC, said businesses understood that the next few years would be "acutely painful" as the austerity measures were put into place. He said: "However, deficit reduction alone is not enough to secure recovery. There will now need to be a relentless focus on ensuring business is able to deliver growth, create jobs, and drive a lasting recovery." Meanwhile Ernst & Young suggests that interest rates should remain low as the base rate should not change till 2014. Small businesses and medium size businesses should find lenders more willing to loan funds for the company’s survival as they seek to lend more to the business market and less to the housing market. If you need a small business remortgage to gain access to cash flow for your business request a free non-obligation quote today!