Business believes Budget won’t improve deficit, survey shows

More than two thirds of businesses believe the Chancellor is doing a bad job, following the announcement of the Budget 2010 last week.

A survey of 1,200 business leaders by the Institute of Directors found that 45% thought last week’s Budget would damage the economy, while only 16% felt it would have a positive effect.

Chancellor Alistair Darling was also accused of avoiding the issue of debt reduction, as respondents were sceptical about government plans to cut the deficit in half within four years.

In total 64% of business leaders thought the fiscal deficit would worsen following the Budget. Only 12% thought it would improve, the BBC reported.

Miles Templeman, director general of the Institute, said: “It’s deeply worrying that instead of boosting confidence, the budget appears to have had the opposite effect.

“There is a clear perception among business leaders that this was a bad budget because it ducked the big issue of the day, which is debt reduction.

“This reinforces our conviction that until the government produces a credible plan to tackle the deficit and begins to implement that plan, business confidence will continue to be dented.”

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