By Ian McConnell
UNCERTAINTY over trade with the European Union is a top concern of UK business leaders, a survey has revealed.
The Institute of Directors’ survey published today shows that, aside from coronavirus and the wider economic conditions, the top concern of UK business leaders is uncertainty over trade with the EU. The UK remains in talks with the EU on a trade deal, with less than three months to go until the end of the transition period which has kept Britain in the European single market,
Other concerns included broadband problems and skills gaps, which the IoD said was suggestive of the impact of remote working.
READ MORE: Ian McConnell on Brexit: Is illusory truth effect at play as Leavers lap up Tory Brexit? – Opinion
The survey also shows the recovery in business leaders’ investment and hiring intentions has stalled. And employment expectations for the year ahead remained negative.
Directors’ confidence about the economy varied between different parts of the UK, with those in Yorkshire, the East Midlands, and north of England “notably less negative than those in London or Scotland”, the IoD said.
READ MORE: Ian McConnell:Brexit brigade under mounting pressure to sort out bizarre mess - Opinion
Tej Parikh, chief economist at the IoD, said: “The overall business outlook appears to be stuck in the doldrums. The current restrictions put a lid on demand for a number of sectors, but local lockdowns and the prospect of stricter measures down the road are putting even more businesses in a bind. It’s crucial that the test and trace system can start firing on all cylinders to ease some fears. Ongoing support for firms' cashflow will also be crucial."
He added: “With hiring intentions bleak and redundancies expected in sectors such as hospitality, the Treasury should step in to support job creation. Lowering employment costs will be crucial to help firms that are doing well to pick up the slack.
“The Prime Minister rightly emphasised the UK’s long-term productivity challenge this week. Business investment will be key to any attempt to lift output, but this could be limited by the impacts of the virus. Giving SMEs extra headroom through (small and medium-sized enterprises) tax reliefs to spend on new technology and adaptations could help raise business spending.”
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereLast Updated:
Report this comment Cancel