Small firms give thumbs down for George Osborne's recovery plans
Monday 08 April 2013
London’s small businesses delivered a harsh verdict on the Chancellor’s faltering efforts to kick-start the recovery today, with just one in 10 claiming the economy has improved in the last six months.
The findings come in the latest London Business Monitor — the quarterly snapshot of the health of almost 250 small and medium-sized businesses produced exclusively for the Evening Standard by Western Union Business Solutions.
The warning emerged as Britain veers dangerously near a triple-dip recession in the slowest recovery for more than a century, although London is faring better than the rest of the country.
It found just 10% of respondents thought the economy had improved during the past six months. More than two-thirds of firms, or 70%, see no light at the end of the tunnel for the UK business climate, and six in 10 harbour little hope of an export-led recovery over the next year,
Although a majority of the capital’s firms are confident of boosting their international business over the next year, a quarter of companies are still struggling to access credit and two-thirds are sceptical of the Coalition’s plans for a new business bank.
Jonathan Rees, WUBS’ UK regional director, said London’s businesses were weathering the economic storm “with fortitude”, but added: “A volatile first quarter has given reasons for both optimism and concern.”
A weak pound also tops the worry list for 65% of companies in the capital, up from less than one in five during January. The worries come against the backdrop of a turbulent three months for sterling, which is down more than 6% against the dollar and over 4% against the euro so far in 2013 despite stabilising in recent weeks.
The pound lost ground sharply earlier this year as apparently successful efforts to stabilise the eurozone prompted a sterling sell-off, although inconclusive Italian elections and a Cyprus bailout have added to uncertainty. A third of businesses are being hit by currency effects as import costs rise, although nearly half of firms are unfamiliar with potential ways to hedge the risk.
Rees added: “Many exporters are also importers and more must be done to help SMEs in the capital manage their international cash flow so the potential benefits from a weaker pound are not offset by equal or greater losses.”
- 1 Woman falls to her death as she celebrates marriage proposal at the edge of Ibiza cliff
- 3 Dad attempts revenge on teenage daughter, plan backfires spectacularly
- 4 Ball pool for adults opens in London
- 5 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
Woman falls to her death as she celebrates marriage proposal at the edge of Ibiza cliff
Boris Johnson claims porn-obsessed Islamic jihadists are 'literally w*****s'
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Ball pool for adults opens in London
Amal Clooney gives excellent response to fashion question at European Court of Human Rights
9 reasons Greece's experiment with the radical left is doomed to failure
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
iJobs Money & Business
£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...