More than two-thirds of companies are concerned about a government led by new Prime Minister Andy Burnham, according to a survey by a Stoke-on-Trent-based accountancy firm.
DJH’s Future of Business report surveys 200 business owners across the UK, who raised concerns relating to taxation, employment costs and regulation.
Some 67% of respondents said they would be concerned about the new leader, while three quarters of firms were worried about a rise in taxation and nearly half (46%) viewing more red tape as another significant barrier to growth.
The potential for a Number 10 in the North generated a divided response – 38% were against, 31% in favour and 31% remained neutral. More than half of firms (52%) said they would welcome a ‘snap election’.
Addressing potential new Chancellors, Wes Streeting scored highest (13%), followed by Pat McFadden (9%) with Shabana Mahmood and Ed Miliband polling 6% and 4% respectively. The rest of the respondents, 42%, had no preference.
Scott Heath, CEO of DJH, said: “It’s clear from our latest report that Andy Burnham has work to do to convince a somewhat ‘sceptical’ business community that he is the right man to take the economy forward.
“Business owners from across 15 different sectors gave us their opinions. 58% of them cited the rise in National Insurance contributions as having the biggest impact on their operations and the feeling is that this could get worse with many of them fearing future tax increases.”
He added: “Companies are telling us loud and clear that stability matters more than new announcements, they want less red tape and rising employment costs are becoming a bigger growth constraint.
“They do agree that there is an opportunity for regional growth and that is reflected in the creation of an industrial strategy in all regions being the least unpopular single option among a largely unconvinced business base.”
In the same survey, 38% of companies reported an increase in turnover, with one fifth taking more people on to cope with growth.
Two in five businesses (40%) are also still planning to invest in equipment, premises, AI or technology to boost growth.
Scott said: “This suggests a two-speed economy is emerging. Growth has not disappeared, instead it is becoming more selective and sector-dependent, with management teams increasingly focused on efficiency, productivity and resilience rather than expansion at all costs.
“Businesses clearly view taxation as a growing challenge, particularly National Insurance contribution increases and uncertainty around future tax policy. If Andy Burnham wants to turn the scepticism into optimism, there are some decisions he could make here to unleash the full potential of UK business.”
In his first speech as Prime Minister yesterday, Andy Burnham said he set out help regarding cost of living from today (21 July), with a new 10-year plan for Britain to come out later this year.
