UK Business Barometer

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The May UK Business Adviser Barometer survey questionnaire received 166 responses. The May survey was seeking views on the Euro, health and safety, difficult economic conditions, businesses and broadband, commercial property prices, pension arrangements, time off for leisure, hard to fill vacancies, new jobs and visits to UKBAB and UK Business Barometer websites.

Joining the Euro has been the subject of much debate over the past few weeks, culminating in the Chancellor announcing that the five economic tests have not been satisfied at present. The May Business Adviser Barometer asked respondents for their own views on adopting the Euro. The Business Barometer Survey has already been monitoring opinion over the past two years and the two results are remarkably close.

The Euro has recently gained strength against the pound and this has influenced over 35% of panellists, one way or the other, in their attitude towards joining. The Business Barometer Survey produced a similar result.

Health and Safety responsibility awareness is moderate among small businesses. None are completely unaware, but only 2% are highly aware. 43% fall at the lower end of awareness.

Last month the Survey asked which area clients would be most likely to look to first for savings in difficult economic conditions, other than through changing prices. This month's question focused on pricing behaviour, and 95% of respondents believe that their clients would reduce prices to increase market share rather than raise prices to shore up revenue.

With broadband coverage increasing geographically, many businesses are considering whether to sign up. Business Advisers have found that 34% of clients experience significant benefits and 45% gain minor benefits from broadband.

Given the experience of a continuing weak stock market and a strong housing market, commercial property can become the target of financial players. 41% of Business Advisers responding to the UKBAB have clients that have observed commercial property costs increasing, while 29% of respondents to the UKBB believe that commercial property prices are increasing.

Pension funds are now regularly in the news, especially while fund recovery is very small and slow. Our survey question confirmed that the majority of clients are concerned about the adequacy of their pension arrangements.

Linked to the previous question on pension provision, anxiety about being away from the business can prevent holidays being taken etc. Business Advisers find that 70% of clients are highly or moderately highly resistant to taking time out for leisure, although only 47% of businesses themselves, responding to a similar question in the UKBB, would put it that strongly.

Hard to fill vacancies where monitored last through the Business Advisers Barometer in September 2002. This months survey provides a comparator and only shows small category changes. When asked the question "Does your business have hard to fill vacancies currently?" in the May Business Barometer, 25% of respondents said 'Yes' and 70% responded with 'No'.

Economic growth mainly arises from the expansion of small and medium size enterprises. 42% of responding Business Advisers think that between 1% and 10% of their clients have created net new jobs over the last three months. However, over the last three months 44% of Business Barometer respondents have created no net new jobs.

Benchmarking against colleagues and interest groups views and attitudes can be helpful in maintaining awareness of developments in business. Two questions referring to use of the Business Barometer and the Business Adviser Barometer results revealed that these sites are currently under-used by their panellists. The identical question was asked to each survey panel in each case.

Views expressed are those of individual panellists and may not represent those of the IBA or the University of Nottingham.

All these questions about the Euro imply some degree of inevitability.The political issues, and the threat to the U.K.'s very independence of the European Constitution's implications are of far more significance than mere economic factors.

It is helpful that an independent organisation is gathering information. Surveys commissioned by Government Departments and QUANGOS have a tendancy to bias and therefore cannot be trusted.