Businessunhappy with the Government

Ahead of next week'sBudget new research from the Institute of Directors (IoD), reveals strongbusiness dissatisfaction with the Treasury's conduct of fiscal policy. However,the same research reveals strong business support for the Bank of Englandsconduct of monetary policy.

When asked howfavourable or unfavourable the Government's management of fiscal policy wastowards business, there was a negative balance of minus 50%.

In sharp contrast,when asked how favourable the Bank of Englands conduct of monetary policy wastowards business, there was a positive balance of 50%.

Graeme Leach, ChiefEconomist at the IoD, said:

This research shows IoDmembers believe tax and spend fiscal policy is damaging business prospects.Fiscal policy is heading in the wrong direction. Higher public spending isyielding little or no benefit whilst higher taxation is undermining long-termgrowth.

Ends 4.4.03 No.158

Notes to Editors:

The IoD (Institute ofDirectors) is a non-party political independent organisation with around 55,000members. In addition to its wide range of business services, the IoD providesan effective voice to represent the interests of its members to government andkey opinion-formers. It also brings the experience of business leaders to bearon the conduct of public affairs.

Contact Points:

Richard Taylor, PressOfficer, tel: 020 7451 3264

mobile and out of hours: 07721 734886

David Marshall,Director of Public Affairs, tel: 020 7451 3263

mobile and outof hours: 0776 4883420

email: press@iod.com

web: www.iod.com