ECI says firms are losing faith in government’s economic plans

Ben Southwood
Follow Ben
BUSINESS confidence in the government’s economic policy has plummeted over the last year, a report from ECI, the private equity firm, showed today.

While businesses understand the need for fiscal consolidation, they have made an about-turn in their assessments of chancellor George Osborne’s economic policies.

While 42 per cent said coalition policy was having a positive impact in 2011, just 14 per cent say so now – and just one in 50 say policy has been very positive, versus one in 20 last year.

Firms complained about mountains of red tape, with 19 per cent saying regulatory issues were the main barrier to growth. Companies also slated the education system and tightening immigration restrictions – 27 per cent said a lack of human capital was their biggest constraint.