UK telecoms sector predicts more government bureaucracy over next decade
The majority of telecoms businesses in the UK are yet to be convinced of politicians’ ability 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 telecoms companies were pessimistic about the future of the economy with 71 per cent expecting higher taxes (21 per cent expected them to be much higher) and 27 per cent predicting much more red tape.
Lorraine Ruckstuhl, Corporate Director, TMT Barclays Corporate, commented: “These results seem to imply the UK telecoms industry is getting anxious that the growth and development of the sector may be stifled due to bureaucracies. The government needs to be careful it nurtures the industry so foreign investment and growth continue.”
The telecoms industry is split over whether the economy will be more or less public sector focused by 2021, but 68 per cent are not convinced a budget surplus will be achieved by then. The largest telecoms companies are the least confident of a surplus being generated.
Lorraine Ruckstuhl continued: “With the telecoms sector also not confident the local infrastructure that’s in place today will support their business in ten years’ time (only 44 per cent said it would be fit for purpose), it is that vital care is paid to ensuring an environment is created in the coming years that will encourage new developments and services, and facilitate growth for the industry “
*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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