UK media sector predicts a less public sector focused economy in a decade but is sceptical about political change
The majority of business leaders in the UK media sector believe the economy will be less reliant on the public sector over the next decade but 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, in which 660 business leaders were polled on the political conditions they expect their businesses to face in a decade, found that companies were resigned to the fact that they would be dealing with higher taxes (61 per cent) and more red tape (64 per cent) in a decade. The media industry, however, is less sceptical of higher taxes (53 per cent) and is divided on whether they will be dealing with more or less bureaucracy.
The vast majority (89 per cent) of media companies are also planning for a less public sector focused economy, as are 82 per cent of technology companies. Conversely manufacturing is the only sector that believes there will be an increase in public sector reliance over the next decade.
Lorraine Ruckstuhl, Corporate Director, TMT, Barclays Corporate, commented: “The fact that most businesses are looking to private enterprise for growth in the UK is welcome news but not unusual for the media industry. While central and local government is a key source of income for other types of business around the UK, these results underline the fact that media companies know they should be looking outside of the public sector to achieve success over the coming decade.”
UK media businesses are divided on whether infrastructure will be more or less able to support the needs of the media environment, but more positive than other industries about the state education system with 56 per cent believing it will be more successful by 2021.
Lorraine Ruckstuhl continued: “With businesses divided over whether infrastructure and will be fit for purpose in a decade, media companies must be proactive in advocating what infrastructure investment and education policy they believe will best facilitate growth for their region in the coming decade.”
Almost three quarters of British media companies (74 per cent) do not believe a budget surplus in the public sector will be achieved by 2021, with the largest media companies least confident of a surplus being generated.
*This research is party of a wider ‘2021 Report’, the full findings of which are released today. The Report is based on a survey of 664 businesses of all sizes across the UK.
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The views express in the Critical Research Limited survey (the “Survey”) are those of the authors and do not necessarily state or reflect the views or policies of Barclays Bank PLC (“Barclays”). Publication of the Survey by Barclays should not be considered an endorsement and Barclays does not guarantee the accuracy or completeness of the Survey. No representation is made by Barclays as to the reasonableness of the assumptions made within the Survey or the accuracy or completeness of any models contained therein.
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