UK Business Barometer

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The March Survey asked for views on absenteeism, insurance, impact of the Budget, and succession planning. Two questions, both on the impact of the Budget on small businesses, called for free-format responses and the responses to these will be published later.

126 Business Advisers responded to this Survey.

Survey Findings

Several recent reports on absenteeism suggest that levels and costs to businesses are substantial and hard to reduce. The March survey asked if absenteeism is a problem for panellists' clients' businesses, and in the parallel survey of businesses, the UKBB, panellists were asked if absenteeism is a problem for their own businesses. The results suggest that for smaller businesses at least, like those included in or covered by the survey panels, absenteeism is not a problem to the majority. 59% of UKBAB respondents and 56% of UKBB respondents said that it was unproblematic or nearly unproblematic although 11% of UKBAB and 16% of UKBB said that it was either problematic or highly problematic.

Business insurance has increased steeply in recent years, especially in employers' liability insurance and we have previously asked questions about affordability. In February 2003 we asked to what extent panellists thought there was a danger of rising insurance premia leading to reduced or inadequate cover for their clients, and 61% thought this would have a significant impact on level of cover. However, although 10% of respondents to the business advisers survey didn't know if clients were appropriately insured, from those who did, as shown in the chart, 52% thought that clients' insurance was at an appropriate level. 64% of respondents to the UKBB March survey thought they were neither over nor under insured.

Post-budget, the UK Business Advisers Barometer asks how panellists view the impact on their clients' businesses, and the UK Business Barometer asks how respondents view the impact on their own businesses. There was close agreement between the two groups in the proportion that feel the impact will be neutral, with 57% of UKBAB and 58% of UKBAB. Very few of either group think there are likely to be positive or significantly positive effects:2% in each case. The remainder, 41% and 40% respectively, all expect a negative or significantly negative impact.

Business Advisers can be involved in all stages of development of a business and the results to this survey demonstrate that a substantial proportion of Advisers are consulted about plans for passing on control of their clients' businesses. Nearly 10% are very involved in succession planning, and altogether 71% have some level of involvement with it. 90% feel that it would, to some degree, be useful to develop their knowledge and experience about succession planning, with 26% saying that it would be very useful to them.

Trends Questions

The average number of clients seeking business advice increased in the March quarter, following a similar pattern to this time last year, but at a slightly lower level..

There was a marked increase in the number wanting to start a business compared to December. This was consistent with the seasonal pattern last year but the level of interest this March is higher.

Ability to gain access to finance returned up to the level shown in December 2002 and March 2003.

The number of Advisers clients finding that there is a shortage of skilled labour decreased on average during the March quarter. This is consistent with the findings of the UK Business Barometer.

In the March quarter, Advisers were on average more optimistic about the continuance of their clients trading over the next year. 66% thought that up to 10% of their clients might cease trading compared with 62% in the December 03 quarter, but this was the results of a decrease in expectations of higher numbers of business cessations :4% in March, compared with 8% in December thought that over 20% might cease trading.

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

Budget was a great disappointment to the small businesses with which I work.

Well worded questionnaire with no "cul de sac" questions that I can't answer because they don't apply!