A recent survey of interim executives found that the vast majority of senior managers believe that the Government should focus on creating growth in the UK economy rather than concentrating on cost-cutting measures.
Government support required to kick start economy
According to the poll, carried out by Interim Partners, 74% of respondents now favour the promotion of growth over cuts, compared to a 52% last year.
The survey revealed growing support for a cut in the standard rate of VAT (67%), which has risen from 15% in December 2008 to the current 20% rate today.
Many interim managers also feel that the Government should provide targeted help to specific industry sectors – 31% believe the manufacturing and engineering sectors should be singled out for special treatment, and one quarter of respondents feel that the construction sector could use extra assistance.
When questioned about monetary policy, most interim managers think that the current Bank of England stance on interest rates should be maintained, and the overall opposition to further Quantitative Easing has only grown marginally since last year’s poll – from 55% to 57%.
Views of interim managers should be listened to
Commenting on his firm’s survey findings, Doug Baird, MD of Interim Partners, said that interims seemed to be “increasingly uneasy about the failure of the UK economy to bounceback strongly from the financial crisis.”
Baird said that interims had a “front row seat” when it comes to witnessing the effects Government policies have on the economy, and so their views hold considerable weight.
Calling for Government support is very much a last resort in a free market economy, however many interims feel that “there are no other options remaining when it comes to boosting UK businesses.”