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Business leaders tell Osborne to act quicker to boost economy

George Osborne Podium 480

Company bosses have criticised chancellor George Osborne for doing “too little, too slowly” to revive the UK’s economy and say efforts to cut down on tax and red tape have been “ineffective”.

Reports say the Institute of Directors has hit out at Osborne’s strategy of cutting public spending which is prolonging the recession.

In a poll of over 1,200 of its members, the IoD found that business leaders have “serious concerns” the recession will last for the rest of this year with a modest recovery next year.

Out of those polled, 68 per cent criticised efforts by the Government to reduce red tape with a further 62 per cent dismissive of changes to employment law.

Some 54 per cent of respondents said attempts at cutting taxes had been ineffective. Just under half said they had delayed investment or recruitment this year because of the uncertainty around the economy.

A further 66 per cent of those surveyed said there was little or no possibility of the recession ending this year.

IoD chief economist Graeme Leach says businesses were “battening down the hatches” ahead of an expectation that recession will continue this year.

He said: “Low confidence leads to delayed decisions, and delayed decisions further undermine economic confidence, it is a vicious cycle.

“The Government’s reform agenda is pointing in broadly the right direction, but the overwhelming opinion of our members is that they are doing too little, too slowly.

“If the coalition wants to break this cycle of low economic confidence, then it needs to take some bold steps that will make a real difference to the cost and complexity of doing business in the UK.”

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