4 out of 5 Brokers think the Government should be doing more to stimulate the economy

More than 4 out of 5 brokers think the Government is not doing enough to stimulate economic growth and two thirds of brokers say the economic climate is having a negative impact on their business.

The new survey carried out by United Trust Bank amongst brokers operating in the bridging, development finance and asset finance sectors found that 82% of brokers felt that the Government could be doing more to get the UK economy back on its feet.

The findings come soon after figures from the ONS revealed that the output of the economy fell by 0.7% between April and June 2012, deepening the recession.

67% of brokers responding to the survey indicated that the current economic climate has had a negative effect on their business with 75% describing the 3 year outlook for the UK economic climate as ‘unsettled’. 18% described it as ‘gloomy’. However, 25% of brokers suggested that their business had been positively affected by the economic climate.

Brokers calling for a further reduction in interest rates were heavily outnumbered by those who believe the 0.5% base rate is fine where it is. 75% of brokers believe the Bank of England should leave rates alone and 16% feel the rate should come down even lower. 8% think interest rates should rise.

When asked what the Government’s main fiscal approach should be nearly half of brokers would like to see a lowering of personal and/or corporation taxation and 18% would like an increase in public spending. Just over 1 in 5  believed we should continue with the current austerity measures.

Commenting on the research findings Harley Kagan, Managing Director of United Trust Bank said;

“It’s clear from this research that most brokers want more action from the Government to get the economy moving forwards. Although some brokers have taken advantage of the economic turmoil and seen opportunities to grow their businesses, many want more support during this economic downturn. However, it does seem there’s little appetite for a further reduction in interest rates.

“The availability of credit is a major factor in stimulating economic growth and United Trust Bank has continued to provide finance to a wide range of businesses for a great many uses. Our funding is robust and reliable and we will continue to support brokers who approach us with well planned proposals even when their usual lenders may have turned them away.”