Small businesses in the UK are no longer placing any faith in government economic predictions, new figures show.

Small businesses in the UK are no longer placing any faith in government economic predictions, new figures show.

When planning for the future less than one in ten UK firms look to the government for economic projections.

FIndings from AXA Business Insurance reveal that 92 per cent of the 500 respondents are not using official government economic data in planning processes.

A further 57 per cent of companies disregarding Whitehall forecasts when reviewing business plans do not believe that the predictions are relevant to business. Furthermore, some 31 per cent do not believe that the figures are truly accurate.

The survey also reveals that a minority figure (17 per cent) are actively looking for external advice to improve the running of their business. Of those looking: industry peers, business networks and accountants and banks are cited as sources of projections.

Darrell Sansom, managing director for direct and partnerships at AXA Business Insurance, comments, 'The UK's small business community has long relied on help from a variety of sources to inform their business plans - be they government bodies, trade organisations, industry peers or others.

'The fact that so many business owners are choosing not to use these sources of data suggest they're turning into other channels and finding more accurate information flows elsewhere.'

Sansom still believes that the old adage of 'knowledge is power' still applies and that being equipped with accurate and relevant insights is 'critical' to making informed decision.

See also: Government unveils 'straight talking' pensions guide for small businesses