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AltAssets is the private equity news and research service from Almeida Capital
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PRINT THIS PAGE Private equity and venture capital professionals' UK economic outlook negative17/01/2008. Source: AltAssets. 
Private equity and venture capital professionals view the UK economy in 2008 with concern as 70 per cent of BVCA member companies say that they expect the UK's economic environment to get worse over the course of the year, according to a new YouGov poll published by The British Private Equity and Venture Capital Association (BVCA). In comparison, a September 2007 poll showed that back then only 48 per cent expected a worsening of the UK's economic environment over the next 12 months.
In December 70 per cent viewed the UK as an attractive place to do business, down from 93 per cent in September.
The regulation burden will increase, said 71 per cent of the respondents in December (up from 57 per cent in September), while 86 per cent believe the burden of taxation will increase (up from 69 per cent in September).
Members were also asked at what level they expected base rates to be in December 2008. The majority (58 per cent) expected rates of between 4.51 per cent to five per cent, compared to the current 5.5 per cent. A further nine per cent expected rates of between 4.01 per cent to 4.5 per cent. Additionally, 29 per cent expect rates of between 5.01 per cent to six per cent.
BVCA chief executive Simon Walker said, 'The clouds are gathering. This is not going to be an easy year for the economy or for private equity. The economic environment is becoming much tougher. It is essential for the UK economy that private equity can compete in difficult times, creating new jobs and providing good returns for pension funds.
'Private equity is about backing entrepreneurs and growing business - critical for the economy at any time, but especially during a downturn,' Walker emphasised.
YouGov conducted this research with a non-random sample, receiving 96 individual responses from 73 member companies.
Copyright © 2008 AltAssets
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