Six out of ten UK companies do not believe the government is providing the right support for economic growth.

Six out of ten UK businesses do not believe the government is providing the right support for economic growth.

According to a study of 1,000 company owners by Bibby Financial Services, just 8 per cent believe the right measures are in place to avoid a double-dip recession next year, despite Chancellor George Osborne’s plans to kick-start the economy announced in the Autumn Statement.

The survey reveals that 40 per cent think a VAT reduction by 2.5 per cent in 2012 would provide real support to small and medium sized-enterprises, and almost a third (30 per cent) want to see the 50p rate of income tax scrapped to encourage better trading conditions.

More than a quarter, 26 per cent, also believe compelling banks to provide better access to finance for smaller businesses will provide effective support, with 24 per cent saying there should be more investment in core sectors to help growth.

Edward Rimmer, UK chief executive at Bibby Financial Services, says the results of the survey highlight real concerns about business support and the shape of the economy moving forward into 2012, and that effective action on issues such as tax will make a real difference.

He adds, ‘Our research is the biggest survey we have undertaken this year to gauge the mood of small and medium-sized business owners after a very difficult 12 months. And looking ahead to next year it is clear there is great uncertainty among the business community as well as a lack of faith in government plans to take the economy forward.

Many of the business owners in the survey said there has been a lack of information available about funding and that sole traders and micro businesses are finding it particularly tough.

'That is why we need to be reaching out to those businesses who feel they have few options when it comes to funding and support to make them aware of the funding solutions that are available, such as invoice finance, so that next year is a better prospect for business growth,' Rimmer adds.

See also: Small businesses miss out on alternative finance through lack of information