Mid-market business leaders applaud Gordon Brown, but groan about government red tape

Independent private equity firm Sovereign Capital's poll of senior management and non-executive directors running mid-market enterprises, shows support for the Chancellor's stance on the euro, but they have had enough when it comes to increased government regulation and red tape.

Sovereign Capital, which typically invests between £2million and £15million in unquoted UK businesses, sought the views of top board directors, operating in the mid-market. On Wednesday 25^th June, the findings of its latest poll will be circulated to the 60 participants of its Business Leaders' Forum.

Chancellor Gordon Brown's recent "not yet" decision on the euro found favour, with 75% of respondents supporting Britain remaining outside the euro-zone. Peter Brooks, managing director of Sovereign Capital, commented "Mid-market business leaders are deeply sceptical about the benefits of a single European currency and there was a huge sigh of relief in these quarters when the Chancellor made his announcement."

However, the government took a hit on the subject of increased legislation and red tape. Asked if the government was stifling entrepreneurial business with red tape, 87.5% said "yes". "We anticipated a negative response to the issue of red tape, but mid-market business leaders were far more vociferous in their reaction than we thought they would be.  There is an urgent need for the government to stem the tide of legislation. There is a real risk that British business will sink under the weight of rules and regulations."