MOST UK businesses believe the economy will have less reliance on the public sector over the next decade.

But they are yet to be convinced of the ability of politicians to reduce tax, red tape and the deficit, according to research by Barclays Corporate.

The bank’s poll of 660 business leaders found that companies were resigned to the fact that they would be dealing with more red tape and higher taxes.

However, 59% of business leaders – 63% in Yorkshire – predict the UK will be less reliant on the public sector against just 26% nationally and 13% in Yorkshire who believe it will be more dependent on the public sector.