Bosses 'losing faith in coalition'

Most managers have little or no belief in the Government's economic policy amid falling business confidence, according to a new study.

A survey of 500 members of the Chartered Management Institute (CMI) found one in five gave the coalition a vote of no confidence over the economy.

In the private sector, almost half of managers said the Government's austerity programme was actively damaging their organisation, with just 2% reporting any benefits.

Business optimism was lower than it was six months ago, with managers expressing concern about access to finance, barriers to growth and deficit reduction measures.

The level of Government debt was seen as a barrier to growth, but many managers were not convinced that the coalition's measures to tackle the problem were working.

Almost two out of three said they had little or no confidence in the Government's economic policy.

CMI's chief executive Ann Francke said: "Getting Britain back on its feet requires measures to boost management confidence. We need commitment to a wide range of complementary measures, spanning everything from education and training to fiscal and monetary policy.

"Everyone knows things continue to be tough for British business and today's report shows that those steering firms through the recession are crying out for support. Organisations that invest effectively in management and leadership development perform better, so it's no surprise that measures to help them do this are near the top of employers' wish lists.

"At the halfway point of the coalition's five-year term, a worrying number of measures of economic health appear to be stagnating or worsening. Those on the ground trying to make their businesses work are still under pressure to cut costs, still insecure in their own jobs and still don't see things changing any time soon."