ipsos mori captains of industry survey 2016

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05/01/2015

Core Question Deck

Captains of Industry 2015

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C4. What do you see as the most important issues facing Britain today?

2

The most important issues facing Britain today

Our role within Europe

Poor political leadership Terrorism

World Economy Skills shortage Immigration

Uncertainty in Middle

East/China

Base: British Captains of Industry (102) Interviewed Sept – Dec 2015

61%

21%

15% 15% 14% 14% 14%

44%

12%

4% 2%

11%

7%

1% 4% 5%

2015 2014 2013

N/A N/A N/A N/A N/A

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Company optimism levels

C2. Do you think that business for your own company will improve, stay the same or get worse over the next

12 months?

3

0

10

20

30

40

50

60

70

80

90

100

General election

General election

General election

General election

57%

7%

Year

57%

36%

7%

Improve Stay the same Get worse Don’t know

General election


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Company optimism since 1987 C2. Do you think that business for your own company will improve, stay the same or get worse over the next

12 months?

4

0

10

20

30

40

50

60

70

80

90

100

Year

General election

General election

General election

General election

General election

General election

57%

7%

General election


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C5. And, what are the most important problems facing your company today? What other problems are

particularly important?

5

The most important problems facing companies today

Impact of regulation

Finding & retaining the

right staff Growth

challenges Digital

transformation Regulation Skills shortage

Issues surrounding

China


17%

11% 10%

9% 8% 8%

17%

6% 7%

9%

18%

9% 9%

4%

2015 2014 2013

N/A N/A N/A N/A

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Will the government’s policies improve the state of the British economy?

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

6

0

10

20

30

40

50

60

70

80

90

100

General election

General election

General election

General election

96%

1%

Year

29%

67%

3%

1%

Strongly agree Tend to agree

Neither agree nor disagree Tend to disagree

Strongly disagree No opinion

General election


. 83%

12%

2%

3%

87%

7%

4%

2%

Preferred outcome of the EU referendum for business and

Captains’ voting intentions

CEU9/10/0 As you may know, the government has pledged to hold a referendum on the United Kingdom’s

membership of the European Union by 2017.

7

Which outcome of the referendum do

you think would be best for your business?

And which outcome would you personally

prefer?

And if there were a referendum now on whether

Britain should stay in or leave the European Union,

how would you vote?

UK staying in the EU Don’t know UK leaving the EU Refused

Stay in Don’t know Get out Refused


87%

7%

3%

3%

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Captains’ preference for Britain’s future role in Europe

CEU1. Which of these options best describes your own preference for Britain’s future role in Europe?

8

7%

39% 49%

1%

4%

Britain and other member states of

the EU moving towards closer

political and economic

integration

Britain's relationship with

Europe remaining broadly

the same as at present Britain returning to being

part of an economic

community, without political

links

Britain leaving the EU

altogether Other


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Impact of the UK voting to leave the EU on Britain, trade, foreign

investment, business prospects and recruitment

CEU4. Overall, if the United Kingdom voted to leave the European Union in a referendum, please can you tell

me what kind of impact, positive or negative, this would have on the following?

9

13% 7% 5% 5% 3%

49%

15%

61%

23% 17%

76%

20%

31%

63%

28%

47% 52%

20%

56%

6% 15%

6%

25% 26% 23%

Britain’s trade with

the rest of the

world

The British

economy overall

Your company’s

prospects

Britain’s standing in

the world

Foreign investment

in the UK

Your company’s

ability to attract

and retain talent

Britain’s trade with

Europe

Very positive Fairly positive Would make no difference Fairly negative Very negative Don’t know

Base: British Captains of Industry (102) Interviewed Sept – Dec 2015 Responses less than 3% are not shown

2%

2%

.

57%

48% 47%

29% 29%

22% 22% 18%

10% 7%

Ease of visa free

recruitment of

people from

across the EU

Ease of cross-

border trading

within the EU

Being part of the

Single Market

Ease of access to

customers in the

EU

Being part of EU

Free Trade

Agreements

A single

regulatory

framework in the

EU for your

industry sector

EU initiatives to

support business,

e.g. European

Investment Bank,

Structural Funds

Harmonisation of

standards across

the EU

There are no

significant

benefits to our

business from the

UK’s membership

of the EU

Other

10

The most significant advantages to UK business of EU membership

CEU2. Which, if any, of the following are the most significant advantages to your business

of the UK’s membership of the European Union?


.

11

The most significant disadvantages to UK businesses of EU membership

CEU3. Which, if any, of the following are the most significant disadvantages to your business

of the UK’s membership of the European Union?

67%

54%

43% 40%

34%

13%

6% 5% 1%

The volume of EU

regulation

Regulatory

changes from the

EU

Uncertainty over

the UK’s

membership of the

EU

Uncertain

economic outlook

for the EU

Uncertainty around

the future of the

euro / eurozone

Industry-specific

taxation from the

EU

The incompleteness

of the Single Market

Other Don’t know


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Captains’ attitudes to the EU referendum, Europe’s economy, the debt

crisis in the Eurozone and EU reform

CEU5. To what extent do you agree or disagree with the following statements about Britain’s relationship

with the EU?

12

30% 19%

12% 8%

51% 56%

43%

17% 19%

7% 7%

17%

15% 22%

12% 15%

25%

36% 35%

4% 4%

23% 23%

Business leaders should

play an active part in the

referendum campaign

Europe’s economy is too

inflexible to face the

challenges of the modern

world

The debt crisis in some

Eurozone countries is a

significant risk to the British

economy

Britain would be better off

leaving the EU than being

part of an unreformed EU

The debt crisis in some

Eurozone countries is a

significant risk to my

company

Strongly agree Tend to agree Neither agree nor disagree Tend to disagree Strongly disagree Don’t know


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Business planning for a possible British exit from the EU and

consultation by the government

CEU6. Which, if any, of the following apply to your company? Please choose all that apply.

13

36%

25%

7% 5%

1%

43%

We are carrying out

planning scenarios

for a possible British exit of

the EU

We expect to be

consulted by the

government

on what reform agenda to

pursue in

negotiation with the EU

We have been consulted

by the government

on what reform agenda to

pursue in

negotiations with the EU

We have reduced or

delayed investment

programmes because of

uncertainty about the

outcome of the

referendum

We have donated or are

considering

donating to one of the

referendum campaigns

None of these


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Perceptions of the level of regulation affecting UK businesses

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?

14

67% 2%

31%

Increasing Decreasing No change

64% 5%

31%

69%

2%

29%

2013 2014 2015


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Attitude to the effect of the level of regulation on UK business and

the UK economy

C3. To what extent do you agree or disagree with each of the following statements?

23

28

35

35

54

51

46

48

15

8

15

7

7

12

2

10

2

2

1

2015

2014

2013

2012

Strongly agree Tend to agree Neither agree nor disagree Tend to disagree Strongly disagree

The level of regulation

on UK businesses is harming the UK

economy

Net percentage points (% Agree - % Disagree)

2012 +72pp

2013 +77pp

2014 +67pp

2015 +68pp

Base: British Captains of Industry 102 interviewed Sept – Dec 2015, 108 interviewed Sept – Dec 2014, 105 interviewed Sept – Dec 2013, 103 interviewed Sept – Dec 2012

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31%

65%

2%

2%

Strongly agree Tend to agree

Neither agree nor disagree Tend to disagree

Strongly disagree No opinion

Attitudes to the UK as an attractive place to invest

C3. To what extent do you agree or disagree with the following statement?

19%

63%

12% 5%

1%

42%

50%

3%

3% 2%

2013 2014 2015

The UK is currently an attractive place to invest

Base: British Captains of Industry (102) interviewed Sept – Dec 2015, (108) interviewed Sept – Dec 2014, (105) interviewed Sept-Dec 2013

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Which is the best country in terms of the environment for doing

business and the most attractive for investment

C42. In the current climate, which of the following countries do you believe offers the best environment for

doing business? C43. Which of the following countries do you believe are the most attractive for investment?

17

45% 39%

USA 33%

19%

UK

6% 1%

Canada

2%

Mexico

1%

Australia

Best environment Most attractive

1% 2%

Germany

2%

Brazil

1% 8%

China

1% 5%

Middle East

8% 2%

Singapore

1% 2%

Africa

3%

Spain

1% 11%

India


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Attitudes to the effect of a slowdown in the Chinese Economy on

the British Economy and on Captains’ companies

C44. To what extent do you agree or disagree with each of the following statements?

18

12

11

64

33

9

18

14

27 9

2

2

Strongly agree Tend to agree Neither agree nor disagree Tend to disagree Strongly disagree No opinion

A slowdown in the

Chinese Economy over

the next 12 months is a

significant risk to the

British economy

A slowdown in the

Chinese Economy over

the next 12 months is a

significant risk to my

company


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Positive and negative effects on companies of government’s attitude,

low oil prices, potential interest rate rise, auto-enrolment, the strength

of the pound and the introduction of the National Living Wage

C45. Overall how much of a positive or negative effect are each of the following having on your company?

19

7% 13%

4% 6% 4% 6%

54% 42%

23% 20% 21% 15%

20% 21%

39% 57%

41% 58%

17% 15% 31%

13%

26% 15%

8% 3% 6% 5%

The current

government’s attitude

to UK businesses Current low oil prices

The likelihood of

interest rates rising in

the next 12 months

Employer provided

auto-enrolment

pension scheme for

all employees

The strength of the

pound compared to

other global

currencies

Planned introduction

of the National Living

Wage

Very positive Fairly positive Neither positive or negative Fairly negative Very negative No opinion


1% 1%

.

0

10

20

30

40

50

60

70

80

'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 11 12 13 '14 15

The most impressive business person in Britain at the moment

20 Base: British Captains of Industry 2015 (102), 1981-2014.

C26. Who do you think is the most impressive business person in Britain at the moment? Who else?

Lord Weinstock

Lord Weinstock

Sir John Harvey-Jones

Lord Hanson

Lord Hanson

Sir David Simon

Richard Branson

Sir Colin Marshall

Sir Richard Sykes Lord

Browne

Lord Browne

Sir Terry Leahy Sir Terry

Leahy

Sir John Rose

Sir Richard

Branson

Justin King

Sir Richard

Branson

Sir James Dyson 14%

Sir Martin Sorrell 14%

2015


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The most admired British company

21

C26B. And which British company do you most admire?

10% 10%

14%

7%

7% 5%

3%

14%

10%

10%

7%

7%

5%

3%

2%

2%

2%

2%

John Lewis

Jaguar

British Airways

Dyson

Rolls Royce

Virgin

HSBC

First Direct

BP

JCB

Spirax Sarco


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Methodology

This report presents findings of the 2015 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 102 respondents took part, details of which are provided below

Fieldwork: September – December 2015

97 interviews were conducted face-to-face and 5 by telephone

22

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Composition of the sample

23

Sector 2015

Services/ Retailing 21%

Financial/ Banking 18%

Technology/ Media/

Telecoms 14%

Construction 13%

Utilities 8%

Manufacturing 8%

Transport/ Distribution 7%

Mining/ Minerals/ Natural

Resources 4%

Other 11%

FTSE Index 2015

FTSE 100 19%

FTSE 250 34%

Other listed and Private 47%

Job Title 2015

Chief Executive 37%

Chairman 26%

Chief Financial Officer 12%

Finance Director 9%

Chief Operating Officer 2%

Other 11%

Employees 2015

1-999 28%

1000-4,999 44%

5000+ 27%

Head Office Location 2015

London 52%

Outside London 48%

Classification 2015

Primarily B2B 49%

Primarily B2C 28%

Mix of B2B and B2C 22%

Other 1%