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Support for business tax cuts amongst senior UK managers leaps

Support for business tax cuts amongst senior UK managers leaps 

?         74% of senior managers back government focus on growth over cuts in 2013

?         67% of senior managers call for VAT cut, up from 56% last year

74% of the UK’s senior managers and directors say the Government needs to favour growth over cuts in the next 12 months, up from 52% last year, according to a survey of interim executives by Interim Partners, a leading provider of interim management solutions.

Interim executives are managers or other senior executives at, or just below, board-level, who are recruited on a short term basis.

Doug Baird, Managing Director of Interim Partners, says: “Interim managers appear to be increasingly uneasy about the failure of the UK economy to bounceback strongly from the financial crisis.”

“With the risk of a triple-dip recession in 2013, the UK’s top managers are keen for more government action, whether that comes in the form of schemes to boost lending and growth or tax reliefs for struggling industries.”

Doug Baird adds: “Interim executives are used by major organisations throughout the private and public sectors, so they have a front row seat when it comes to seeing how government policy affects the economy.”

Interim Partners adds that support amongst the UK’s top managers for a VAT cut also leapt. 67% of interim managers back a VAT cut for 2013, compared to the 56% calling for a cut last year.

The Government raised VAT to 20% for the first time in January 2011. It had previously been raised to 17.5% in January 2010 from 15%, having been cut from 17.5% in December 2008.

An increasing number of interim managers also told Interim Partners that they hoped to see targeted help (e.g. targeted tax cuts) given to specific UK industries:

31% of interim managers said that the UK’s manufacturing/engineering sectors should benefit from targeted help, up from 25% last year.

25% think the construction industry should receive help, up from just 11% last year.

The number of interim managers saying no specific sector should receive help fell from 34% last year to 30% this year.

Doug Baird comments: “The UK’s top managers are usually loath to encourage the UK government to try and & lsquo;pick winners’ to support or to favour one industry over others.”

“For many interims, government support is a last resort option. However, it seems that many of the UK’s most experienced managers feel that there are no other options remaining when it comes to boosting UK businesses.”

Interim Partners’ research also shows that the UK’s senior managers are in favour of the Bank of England holding steady on existing policies. 

88% of interim managers opposed any rise in interest rates in the next 12 months, up from 83% last year.

Meanwhile, opposition to a further round of Quantitative Easing has grown slightly to 57% from 55% last year.

Doug Baird says: “The support for continued low interest rates has increased as the economy has continued to struggle. Senior managers clearly don’t think that UK businesses are ready for increased borrowing costs.” 

“However, there appears to be growing concern about the impact of Quantitative Easing. Many senior managers do not see Quantitative Easing as a long-term solution to the UK economy’s problems.”

“There are concerns about diminishing returns from further Quantitative Easing, the risks of using such an extraordinary measure for so long, and what will happen when Quantitative Easing has to be wound down.”

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