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 ”

Ends

*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.

For more information please contact:

Katharine Simon

Babel PR for Barclays Corporate

(T) 020 7434 5550

(E) barclayscorporate@babelpr.com

About Barclays Corporate

With a clear focus on quality relationships, Barclays Corporate provides integrated banking solutions to businesses with an annual turnover of more than £5 million in the UK and large local companies, financial institutions and multinationals in non-UK markets. We facilitate the success and growth of our clients by providing lending, risk management, cash and liquidity management, trade finance and asset and sales financing. Additionally, our clients benefit from the breadth of the Barclays Group, through access to the investment banking services of Barclays Capital including debt and equity capital markets, the private wealth management expertise of Barclays Wealth, and the card and payment services of Barclaycard. Barclays Corporate employs over 10,000 people globally. For more information please visit www.barclayscorporate.com.

About Barclays

Barclays is a major global financial services provider engaged in retail banking, credit cards, corporate and investment banking and wealth management with an extensive international presence in Europe, the Americas, Africa and Asia. With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs over 145,000 people. Barclays moves, lends, invests and protects money for customers and clients worldwide. For further information about Barclays, please visit our website www.barclays.com.

Disclaimer

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.

Neither Barclays, nor any officer or employee of thereof, accepts any liability whatsoever for any direct or consequential losses arising from any use of the Survey or the information contained therein, or out of the use of or reliance on any information or data set out therein.

Barclays Bank PLC is authorised and regulated by the United Kingdom Financial Services Authority and is a member of the London Stock Exchange. Copyright in this press release is owned by Barclays Corporate (© Barclays Bank PLC, 2011). Barclays Corporate is a trading name of Barclays Bank PLC and its subsidiaries. Barclays Bank PLC is registered in England No. 1026167. Registered Office: 1 Churchill Place, London E14 5HP.