|
21st March 2007 : Post Budget Analysys
In an exclusive survey for the Daily Mail, the Orange Business Jury, conducted by Ipsos MORI, polled 604 decision makers in
Britain's small businesses immediately following the Bank of England's decision, announced on the 5th of July, to raise UK interest rates from 5.5% to 5.75%.
Asked if they expected to have to make any changes to staff levels, nearly two thirds of businesses say numbers will not be affected and only one in ten think
that they would have to make cuts (62% vs. 10% respectively).
The results of the poll show that:
Almost two thirds of businesses think that the rates rise will make no difference to the value of the pound in relation to their business (63%).
There was a three way split on whether the British economy will go into a recession over the next couple of years. A third (34%) say it will, a third say
it won't and a third didn't know.
On borrowing, most UK businesses didn't think that the interest rate rise would cause a problem. Four fifths (80%) said that their current level of borrowing
was not a problem or not a very big problem. Only five percent saw their current level of borrowing as a very big problem.
Q1 If you had to guess, what do you think the level of UK interest rates will be this time next year?
| | % |
| Less than 5% | 6 |
| 5.25% | 9 |
| 5.5% | 19 |
| 5.75% | 23 |
| 6% | 23 |
| Over 6% | 23 |
Q2 Do you expect your headcount to increase or decrease over the next year, or do you expect things to stay around the same?
| | % |
| Increase | 29 |
| Decrease | 10 |
| Stay same | 62 |
Q3 Would you describe the current value of the pound as a problem, an opportunity, or does it make no difference to your business?
| | % |
| Problem | 17 |
| Opportunity | 20 |
| No difference | 63 |
Q4 Do you think the British economy will or will not enter recession over the next couple of years?
| | % |
| Will | 34 |
| Will not | 33 |
| Don't know | 33 |
Q5 To what extent, if at all, is your current level of borrowing a problem for your business?
| | % |
| Very big problem | 5 |
| Fairly big | 15 |
| Not very big | 31 |
| Not a problem | 49 |
|