Captains optimistic about UK economy but see regulation as a challenge
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The document presents findings from a 2013 survey of 105 British business leaders, known as Captains of Industry, on topics related to the UK economy, business environment, and culture. Some key findings include: - 93% of Captains believe the UK economy will improve over the next year, though over half estimate significant growth will take 1 year or more. - A majority agree that government regulation is harming the UK economy, with simplifying employment legislation cited as the top area for reduction. - Justin King is viewed as the most impressive British business person currently, the first time he has topped the list.
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Captains optimistic about UK economy but see regulation as a challenge
- 1. Paste cobrand logo here 1 Embargoed until 00:01 on Friday 3rd January 2014 Survey of Britain’s Captains of Industry 2013 Version 1 | Internal Use Only December 2013 © Ipsos MORI Version 1 | Public (DELETE CLASSIFICATION) Version 1 | Internal Use Only Version 1 | Confidential Version 1 | Strictly
- 2. 2 Economy and Politics © Ipsos MORI Version 1 | Internal Use Only Embargoed until 00:01 on Friday 3rd January 2014
- 3. A majority of Captains (93%) think the economic condition will improve over the next 12 months 3 C1. Do you think that the general economic condition of the country will improve, stay the same or get worse over the next 12 months? General election General election General election General election Improve 100 93% 7% 90 80 70 60 50 40 30 20 93% 10 0 Improve Stay the same Get worse Base: British Captains of Industry (105) interviewed Sept-Dec 2013 Get worse Year Embargoed until 00:01 on Friday 3rd January 2014 © Ipsos MORI Version 1 | Internal Use Only 0%
- 4. Economic optimism since 1987 4 C1. Do you think that the general economic condition of the country will improve, stay the same or get worse over the next 12 months? General election General election General election General election General election 100 General election Improve 93% 90 80 70 60 50 40 30 20 10 Get worse 0% 0 Year Base: British Captains of Industry Embargoed until 00:01 on Friday 3rd January 2014 © Ipsos MORI Version 1 | Internal Use Only
- 5. Just over a quarter of Captains see restoring growth in the economy as the most important issue facing Britain 5 C4. What do you see as the most important issues facing Britain today? Top mentions Rebalancing/ stimulating / restoring growth in the economy 27% Government/deficit/debt 23% Investment in infrastructure 20% Unemployment Inadequate education system/more investment in education 16% 11% The Eurozone 10% International competitivness 10% Base: British Captains of Industry (105) interviewed Sept-Dec 2013 Embargoed until 00:01 on Friday 3rd January 2014 © Ipsos MORI Version 1 | Internal Use Only
- 6. Only 2% of Captains think that business for their own company will get worse; the majority (84%) expect improvement 6 C2. Do you think that business for your own company will improve, stay the same or get worse over the next 12 months? General election General election General election General election 100 14% Improve 90 2% 84% 80 70 60 50 40 30 84% Get worse 20 2% 10 0 Improve Stay the same Get worse Base: British Captains of Industry (105) interviewed Sept-Dec 2013 Year Embargoed until 00:01 on Friday 3rd January 2014 © Ipsos MORI Version 1 | Internal Use Only
- 7. Company optimism since 1987 7 C2. Do you think that business for your own company will improve, stay the same or get worse over the next 12 months? General election General election General election General election General election 100 General election Improve 84% 90 80 70 60 50 40 30 20 10 Get worse 2% 0 Year Base: British Captains of Industry Embargoed until 00:01 on Friday 3rd January 2014 © Ipsos MORI Version 1 | Internal Use Only
- 8. The most important problems that Captains face are difficulty meeting labour demands and government legislation/regulation C5. And, what are the most important problems facing your company today? Top mentions Difficulty meeting labour demands/ recruitment needs/ attracting and keeping staff 18% Government legislation/ regulation General economic climate Internatinal competition/new competitors/ maintaining competitive position 17% 13% 12% Base: British Captains of Industry (105) interviewed Sept-Dec 2013 Embargoed until 00:01 on Friday 3rd January 2014 © Ipsos MORI Version 1 | Internal Use Only 8
- 9. Captains continue to agree that in the long term the government’s policies will improve the state of the British economy 9 C3. To what extent do you agree with the following statement? In the long term, this government's policies will improve the state of the British economy General election General election General election 100 8% 1% 21% 9% General election 90 80 70 Agree 83% 60 50 40 62% 30 Disagree 9% 20 Strongly agree Tend to agree Neither agree nor disagree Tend to disagree 10 0 Strongly disagree Base: British Captains of Industry (105) interviewed Sept-Dec 2013 Year Embargoed until 00:01 on Friday 3rd January 2014 © Ipsos MORI Version 1 | Internal Use Only
- 10. Captains would like the government to invest in the infrastructure and reduce taxation 10 C104. What steps, if any, would you like to see the Government taking to help restore growth in the UK economy? Top mentions Investment in infrastructure 23% Reduce taxation 18% Reduce / simplify regulation/bureaucracy 14% Investment in education/skills/ training 10% Reduce public services spending/debt Encourage longer term planning/strategy/stability/consistency Coherent/consistent energy policy/deal with energy issues 9% 8% 7% Base: British Captains of Industry (105) interviewed Sept-Dec 2013 Embargoed until 00:01 on Friday 3rd January 2014 © Ipsos MORI Version 1 | Internal Use Only
- 11. Most Captains (82%) believe the UK is currently an attractive place to invest 11 C3. To what extent do you agree or disagree with each of the following statements? The UK is currently an attractive place to invest Strongly agree Tend to agree 19% Neither agree nor disagree 63% Tend to disagree Base: British Captains of Industry (105) interviewed Sep-Dec 2013 Embargoed until 00:01 on Friday 3rd January 2014 © Ipsos MORI Version 1 | Internal Use Only 12% 5% 1% Strongly disagree
- 12. The USA remains the best environment for business with China perceived as the most attractive for investment 12 C42. In the current climate, which of the following countries do you believe offers the best environment for business? C43. Which of the following countries do you believe are the most attractive for investment? Top mentions 2013 52% USA 34% 25% UK Brazil 9% 1% Canada India Middle East Mexico 3% 4% Africa Canada 1% 1% Best environment 6% 14% 8% 7% India 17% 6% 2% 4% 2% 10% Middle East (net) 7% 4% 4% 2% 3% Germany 4% 2% 3% China 23% 1% Africa (net) 5% Base: British Captains of Industry (105) interviewed Sept-Dec 2013 2% 23% 1% 3% Base: British Captains of Industry (103) interviewed Sep-Dec 2012 Embargoed until 00:01 on Friday 3rd January 2014 © Ipsos MORI Version 1 | Internal Use Only Most attractive 3% 2% Mexico 0% Best environment 4% Most attractive 1% 1% China 17% UK Australia 4% Germany 45% USA Brazil 7% Australia 2012
- 13. The construction sector is seen as having the greatest potential for growth with the mining/minerals and natural resources sector having the 13 least C44a In which one or two of the following sectors do you see the greatest potential for growth in the UK over the next 12 months? C44b In which one or two of the following sectors do you see the least potential for growth in the UK over the next 12 months? 2013 Construction 2012 57% Technology/media/telecoms 2% 36% Construction 40% Services/retailing 64% 1% 14% 11% Financial/banking/insurance 26% 32% Services/retailing 37% 19% 31% Mining/minerals/natural resources Utilities 18% 2% 16% 21% Manufacturing Transport/distribution 19% 16% Financial/banking/insurance Technology/media/telecoms Manufacturing 4% 11% Greatest Least 7% Transport/distribution 6% 2% Other 28% 21% 1% 1% Base: British Captains of Industry (103) interviewed Sep-Dec 2012 Embargoed until 00:01 on Friday 3rd January 2014 © Ipsos MORI Version 1 | Internal Use Only 23% Mining/minerals/natural resources 61% Base: British Captains of Industry (105) interviewed Sept-Dec 2013 9% Utilities 3% 47% 41% Greatest Least
- 14. 90% say acting with honesty and integrity is extremely important when judging a company or organisation 14 C78. Using a scale from 1 to 5 where 1 means it is not at all important and 5 means it is extremely important, please say how important each of the following factors are when you judge a company or organisation? Acts with honesty and integrity 8% 2% 1% 90% Quality of products or services 54% Quality of management 54% Quality of employees Financial performance Innovative and forward thinking Communications with people like you 43% 44% 20% 43% 18% 5 extremely important 50% 28% 38% 4 10% 43% 3 2 1 not at all important Embargoed until 00:01 on Friday 3rd January 2014 1% 1% 36% Base: British Captains of Industry (105) interviewed Sept-Dec 2013 © Ipsos MORI Version 1 | Internal Use Only 6%1% 1% 38% 45% 12% 2% 1% 3% 1% 6% 1% No opinion
- 15. A quarter say the UK is currently growing but just over half estimate it will be a year or more before the UK economy grows significantly 15 C8. What is your best estimate of when the UK economy will begin to grow in a significant way again? It's growing Up to 6 months 24% 1% 7 months up to 12 months 10% More than 1 year up to 2 years 30% More than 2 years up to 4 years 14% More than 4 years 9% Not stated 9% Don’t know 4% Base: British Captains of Industry (105) interviewed Sept-Dec 2013. Embargoed until 00:01 on Friday 3rd January 2014 © Ipsos MORI Version 1 | Internal Use Only
- 16. 16 Captains and Regulation © Ipsos MORI Version 1 | Internal Use Only Embargoed until 00:01 on Friday 3rd January 2014
- 17. Almost two-thirds think that the level of regulation has been increasing 17 C90. Do you feel that the level of regulation affecting business in the UK overall has been increasing or decreasing over the last 12 months or has there been no change? 31% 39% (2012) 64% 57% (2012) 5% 4% (2012) Increase Decrease No change Base: British Captains of Industry (105) interviewed Sep-Dec 2013, (103) interviewed Sept-Dec 2012 Embargoed until 00:01 on Friday 3rd January 2014 © Ipsos MORI Version 1 | Internal Use Only
- 18. A majority of Captains agree that the level of regulation on UK business is harming the UK economy 18 C3. To what extent do you agree or disagree with each of the following statements? Net percentage points (Net = % Agree - % Disagree): 2013 2 35% 46% 15% 2% 2% 2013 +77pp The level of regulation on UK businesses is harming the UK economy 1 2012 35% Strongly agree Neither agree nor disagree Strongly disagree 48% 7% 10% 1% Tend to agree Tend to disagree Base: British Captains of Industry (105) interviewed Sep-Dec 2013, (103) interviewed Sept – Dec 2012 Embargoed until 00:01 on Friday 3rd January 2014 © Ipsos MORI Version 1 | Internal Use Only 2012 +72pp
- 19. Simplifying employment legislation is the most frequently mentioned area where Captains would like to see a reduction in regulation 19 C6A1. How, specifically, would you like to see the level of regulation on UK businesses reduced in the UK? Top Mentions Simplify/flexibility in employment legislation 22% Better implementation/ more coordinated implementation 13% Simplify/reduce financial sector regulation 13% Better/ less onerous corporate governance regulation 11% Less prescriptive approach to regulation/ more principles based 9% Simplify the planning process/ planning regulation 9% Reduce bureaurcracy/red tape 8% Stability/consistency in the regulatory environment 8% Base: British Captains of Industry, interviewed Sep-Dec 2013, All who agreed that regulation on UK businesses is harming the economy (85) Embargoed until 00:01 on Friday 3rd January 2014 © Ipsos MORI Version 1 | Internal Use Only
- 20. 20 Captains and business culture © Ipsos MORI Version 1 | Internal Use Only Embargoed until 00:01 on Friday 3rd January 2014
- 21. Majority of Captains agree that politicians have a poor understanding of business 21 C3. To what extent do you agree or disagree with each of the following statements? 2013 22% 2012 21% 49% 9% 20% 1% Public culture in Britain is biased against Britain 2013 In general, politicians in this country have a poor understanding of business Strongly agree Tend to agree 2012 49% 10% 51% 36% 44% Neither agree nor disagree 48% Tend to disagree Strongly disagree Base: British Captains of Industry (105) interviewed Sept-Dec 2013, (103) interviewed Sept – Dec 2012 Embargoed until 00:01 on Friday 3rd January 2014 © Ipsos MORI Version 1 | Internal Use Only 16% 2%3% 7% 6% 3%3%3% No opinion
- 22. 22 Most impressive Business Person © Ipsos MORI Version 1 | Internal Use Only Embargoed until 00:01 on Friday 3rd January 2014
- 23. Justin King tops the list as the most impressive business person for the first time 23 C26. Who do you think is the most impressive business person in Britain at the moment? Who else? (*asked as industrialist up to 1999, as business leader in 2000) 80 70 60 Lord Weinstock Lord Hanson 50 40 Sir John HarveyJones 30 Lord Hanson Lord Weinstock Sir Colin Marshall Richard Branson Sir David Simon 20 Sir Richard Branson Sir Terry Leahy Sir Richard Sykes Lord Browne Lord Browne Sir Terry Leahy Sir John Rose Justin King 10 0 '81 '83 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 2000 '01 '02 '03 '04 '05 '06 '07 '08 '09 10 Base: British Captains of Industry, 1981-2013 Embargoed until 00:01 on Friday 3rd January 2014 © Ipsos MORI Version 1 | Internal Use Only 11 12 13
- 24. 24 Methodology and Sample © Ipsos MORI Version 1 | Internal Use Only Embargoed until 00:01 on Friday 3rd January 2014
- 25. Methodology 25 • This report presents findings of the 2013 study of Captains of Industry, widely acknowledged as the authoritative source of opinion on Britain's business elite • Respondents are executive board-level directors and chairmen • Companies are from: • top 500 industrials by turnover; and • top 100 financial companies by capital employed • A total of 105 respondents took part, details of which are provided below • Fieldwork: September – December 2013 • 102 interviews were conducted face-to-face and 3 by telephone • Where results do not sum to 100%, this may be due to computer rounding, multiple responses or the exclusion of don't know categories Embargoed until 00:01 on Friday 3rd January 2014 © Ipsos MORI Version 1 | Internal Use Only
- 26. Composition of the sample 26 Industry Sector 2013 Job Title 2013 Services/ Retailing 23% Chairman 32% Financial/ Banking 24% Chief Executive 35% Technology/ Media/ Telecoms 15% Finance Director/ CFO 17% Manufacturing 11% Managing Director 4% Transport/ Distribution 2% Other 14% Construction 10% Utilities 7% Mining/ Minerals/ Natural Resources 2% Other 6% Employees 2013 2013 FTSE 100 41% Other listed and Private 40% 500-4,999 50% 5000-24,999 29% 9% 19% FTSE 250 12% 25,000 + FTSE Index Below 500 Head Office Location 2013 London 43% Outside London 57% Base: British Captains of Industry 2013 (105), interviewed Sep-Dec 2013 Embargoed until 00:01 on Friday 3rd January 2014 © Ipsos MORI Version 1 | Internal Use Only