Business has substantially more faith in the economic competence of the Tories than Labour, after a sharp drop in confidence in the government during 2007, a poll published on Thursday suggests. Three-quarters of businesses said their confidence in the government’s ability to manage the economy fell last year, with only 3 per cent reporting an increase, a British Chambers of Commerce survey of 345 companies found.

The poll suggested widespread pessimism about the year ahead, with three-quarters expecting both the British and world economies to fare worse in 2008 than last year.