Some 70% of owner-managed company bosses surveyed in the West Midlands, believe that public spending cuts are impacting on their business with some 20% reporting a significant negative impact because of a reduction in public sector orders.

The figures are contained in Haines Watts' annual business survey undertaken by its Birmingham Office.

"This is a tale of woe with the vast majority of businesses reporting that whether directly or indirectly, public spending cuts are impacting on their performance," said Andrew Jones, a partner at Haines Watts.

"About 20% of those responding report a significant negative impact with a further 12% saying they are experiencing a reduction in business through an overall decline in public sector orders. Only 20% say public spending cuts are having no impact. Interestingly and worryingly, no-one reckoned that the spending cuts would impact positively on business." 

The majority of business owners are also reckoning that the UK economy will continue to undergo a period of slow but steady growth.  

"It seems as though the fear of a double dip recession has receded and no-one believes we are going to suffer a worse recession than we have recently. But those running their own businesses are being pretty down to earth and not reckoning on a quick recovery. That is being borne out by recent GDP figures which show that any recovery is still very fragile," said Mr Jones.    

The Haines Watts annual business survey is completed by the firm's clients - the majority of whom are owner managed businesses and SMEs.

For more information on Haines Watts, please visit their website here: www.hwca.com