Report signals less reliance on the public sector in a decade

By Luke Nicholls

- Last updated on GMT

Related tags: Tax

Hospitality and leisure companies expect to deal with more red tape and higher taxes
Hospitality and leisure companies expect to deal with more red tape and higher taxes
Almost half of businesses in the UK believe the economy will have less reliance on the public sector in the next 10 years.

However, they are yet to be convinced of the ability of politicians to reduce tax, red tape and the deficit, according to ‘Politics and the Economy 2021’ research* released today by Barclays Corporate.

The research, conducted with 660 business leaders, found that 42 per cent of companies in the hospitality and leisure sector expect there to be less reliance on the public sector, while 30 per cent expect there to be more in a decade.

It also found that the majority of companies are resigned to the fact that they would be dealing with more red tape (68 per cent) and higher taxes (66 per cent).

Mike Saul, Head of Hospitality and Leisure at Barclays Corporate, said: “While central and local government play an important role in boosting the sector, businesses must accept that relying on the public sector alone is not a recipe for success over the coming decade, particularly with austerity measures as they are.”

The survey went on to show that more than half of the hospitality and leisure businesses surveyed (59 per cent) do not believe state education will be successful in supporting businesses – 41 per cent of which believe it will be much less successful.

Saul added: “The importance of traineeships and apprenticeships in this sector cannot be over-emphasised. With the majority of UK hospitality and leisure businesses believing state education will fail to sufficiently support growth in the industry, a concerted and proactive effort to advocate how education policy will best facilitate growth must be made.”

More than two thirds of British companies (77 per cent) believe a budget surplus in the public sector will not be achieved by 2021.

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