Guernsey Business Survey Suggests Falling Confidence

by Jason Gorringe, Tax-News.com, London

29 April 2003

The annual survey by the Young Business Group found that fifty per cent of those firms that took part did not increase their staffing levels last year, and there is expected to be a substantial decrease in the numbers recruiting this year, reported the Guernsey Press and Star.

The survey results highlight a growing concern that business confidence is falling, and is likely to continue to wane in the coming months.

The Young study also seeks to estimate the level of wage inflation and the rate of increase in fees for the coming year. The prediction for 2003 is a rate of 4.69 per cent, a similar figure to the island's headline inflation rate. However, it represents a decline on the previous year, and is further evidence of a more cautious local economy.

Opinion was also sought on wider issues affecting the island's business and finance community, such as membership of the eurozone. Some 31 per cent thought the UK (and therefore Guernsey) should opt in to the single currency, whilst a little under half those polled were opposed to such a move.

Other issues raised in the survey included strong support for a level playing field with regards to planning legislation, with 82% of respondents saying the States should be subjected to the same planning controls as business.

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