Clifton Asset Management

SME's SEE RECESSION LASTING INTO 2011

Only one in eight business owners believes recovery will come within six months, according to Clifton Asset Management survey

Most small business owners believe the recession has at least another year left to run, according to a new survey.

The latest quarterly survey of more than 1,000 businesses, carried out by Clifton Asset Management (CAM), reveals that 52 per cent of SME owner-managers fear that the economy will remain in the doldrums for another 12 months or more.

Only 12 per cent of businesses believe that the UK will be out of recession within six months according to the research from CAM, which provides specialist financial and strategic advice to SMEs.

Meanwhile 17 per cent think the downturn will last for a further six to nine months with a similar number – 19 per cent – forecasting that it will run for nine to 12 months.

Of the various UK regions, the South East is the only one where a majority (52 per cent) of business owners feel that the recession will be over within a year. Business owners in Wales are the most pessimistic, with 65 per cent believing that the recovery will not begin for at least another 12 months.

“Our survey was encouraging to the extent that business owners feel that the worst may be over,” said Anthony Carty, director at Clifton Asset Management.

“However, SMEs are at the eye of the storm and over half believe the recovery will be long and slow. This seems to chime with forecasts that we could be into 2011 before the recovery is properly under way.

“While our survey suggests that the UK‘s SMEs believe the recession has bottomed out, any recovery will be slow at a time when they are bracing themselves for the ‘double whammy‘ of tax increases and public spending cuts.”

Mr Carty added that the Chancellor‘s Pre-Budget Report would do little to encourage small business owners.

“The plan to extend the Enterprise Finance Guarantee is obviously to be welcomed but on the other hand, Mr Darling‘s announcement of another hike in National Insurance Contributions is a retrograde step.

“The Chancellor has been forced to admit that the recession had been worse than he forecast and we all appreciate that he needs to restore some normality to the public finances, but a tax on jobs is certainly not the way to do it.”

ENDS 15th December 2009

For further information please contact Neil Fraser, Sturgess Van Damme, on 01275 349011 or email neil@sturgessvandamm.co.uk

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