Commercial brokers want more government action

recession

82% of brokers operating in the bridging, development finance and asset finance sectors believe the government could be doing more to get the UK economy recovering.

The new survey, carried out by United Trust Bank, follows on from Office for National Statistics (ONS) figures which showed that the output of the economy fell by 0.7% between April and June 2012.

67% of brokers responding to the survey said that the current economic climate has had a negative effect on their business.

75% described the three-year outlook for the UK economic climate as ‘unsettled’, while 18% described it as ‘gloomy’. However, 25% of brokers suggested that their business had been positively affected by the economic climate.

75% of brokers said the Bank of England should keep interest rates where they are and 16% feel the rate should come down even lower than their current level of 0.5%. 8% think interest rates should rise.

When asked what the government’s main fiscal approach should be nearly half of brokers would like to see a lowering of personal and/or corporation taxation and 18% would like an increase in public spending. Just over one in five said we should continue with the current austerity measures.

“It’s clear from this research that most brokers want more action from the government to get the economy moving forwards,” said Harley Kagan, managing director of United Trust Bank.

“Although some brokers have taken advantage of the economic turmoil and seen opportunities to grow their businesses, many want more support during this economic downturn. However, it does seem there’s little appetite for a further reduction in interest rates.

“The availability of credit is a major factor in stimulating economic growth and United Trust Bank has continued to provide finance to a wide range of businesses for a great many uses. Our funding is robust and reliable and we will continue to support brokers who approach us with well planned proposals even when their usual lenders may have turned them away.”

Exit mobile version