Managers Lose Faith In Economic Policy

Nearly two-thirds of business managers have little or no confidence in the Government's current economic policy, according to a new report.

The study for the Chartered Management Institute (CMI) suggested 63% of managers have altered their position downward, while 20% have given a vote of no confidence on the coalition's half-term performance.

It said only 2% of employers were seeing any benefit from the Government's current strategy, as business optimism dropped 13% in the past six months.

The managers believe the huge burden of public debt and high energy costs are the most significant barriers to economic growth.

As a result, 84% of managers now report that the economy is adversely impacting their organisations.

Meanwhile, the vast majority of CMI respondents (86%) have urged greater bank lending while 81% want improved apprenticeship funding.

CMI chief executive Ann Francke said: "Getting Britain back on its feet requires measures to boost management confidence.

"We need commitment to a wide range of complementary measures, spanning everything from education and training to fiscal and monetary policy."

Less than half of private sector managers, some 45%, now say they feel they can plan for growth and 34% are planning for decline in the future.

The survey also said 72% of managers expect a further rise in business bankruptcies in the coming year amid further negative employment figures.

Ms Francke added: "At the halfway point of the coalition's five-year term, a worrying number of measures of economic health appear to be stagnating or worsening.

"Those on the ground trying to make their businesses work are still under pressure to cut costs, still insecure in their own jobs and still don't see things changing any time soon."