Over 80 per cent of businesses in the Thames Valley are confident about the year ahead, according to the results of a recent survey of business leaders in the region.
In a poll conducted by KPMG, the Royal Bank of Scotland and Shoosmiths at the Thames Valley Business Leaders’ Dinner held in Reading last week, 83 per cent of respondents said they felt confident or very confident about their company’s prospects for the forthcoming year.
Despite a backdrop of a double dip recession in the UK and ongoing turmoil in the Eurozone the survey also found that business leaders were more optimistic about the recovery of the UK economy. 48 per cent of those surveyed said they expected to see the economy improve over the next 12 months, which was an increase of 5 percentage points on last year’s results (43 per cent).
However, planning for the potential fallout from a Eurozone break up did not rank highly on businesses’ agendas. A staggering 48 per cent said they were not preparing for the impact of a Greek Euro exit and the follow on implications this could have for their business.
Andrew Morgan, Partner at KPMG Reading, commented: “In the face of significant global economic headwinds it is very encouraging that business confidence remains high in the Thames Valley. However, business leaders must assess their exposure to the risks of the Eurozone crisis and put in place contingency plans.”
The survey also found that support for the Government’s recovery plan had decreased by 14 per cent over the last twelve months. 53 per cent said they believed the Coalition’s plan for recovery was right for Britain, against 2011’s survey results when 67 per cent of those polled backed the Government’s recovery plan.
Robin Barnes, Regional Director at The Royal Bank of Scotland, said: “Our poll found that businesses are still concerned about how they can achieve growth whilst the economy recovers. Whilst the majority of businesses surveyed support the Coalition’s recovery plan, they stressed the need to have the correct balance between growth and austerity.”
Businesses also reported that concerns around regulation remained a key challenge to overcome, which was also case in the last two years’ surveys.
Emma Gibson, Partner at Shoosmiths, commented: “Increased regulation was listed by those surveyed as one of the biggest challenges facing their business at the moment. It is crucial that the Government cuts through any red tape that could be a barrier to growth.”
Over 100 business leaders were surveyed at the Thames Valley Business Leaders’ Dinner held at the Hilton, Reading on 29 May 2012. Guests were addressed by James Naughtie, a renowned journalist and broadcaster.