Entrepreneurs are throwing their support firmly behind David Cameron’s Conservatives, a survey shows.

Confidence in Alistair Darling’s chancellorship continues to wane, according to research released by entrepreneur think tank the Tenon Forum.

Over half (62 per cent) of the SME owner-managers surveyed believe the Conservative Party best understands the pressures entrepreneurs face, an increase of 34 per cent since 2006.

Just six per cent believe the Labour Party represents their best interests – only slightly ahead of the three per cent supporting the Liberal Democrats.

This swing in favour of the Tories is helping to dispel the malaise which has plagued British politics over the past few years.

Less than a quarter (22 per cent) of the SMEs questioned felt that no political party understands entrepreneurial concerns, compared to more than twice this figure (58 per cent) in 2006.

The East of England is demonstrating the fiercest support for the Conservatives (70 per cent), whilst the East Midlands and the North West remain most sceptical, with a quarter feeling none of the political parties represent them.

According to the Tenon Forum research, Alistair Darling’s poorly-received first Budget has played a key role in alienating UK entrepreneurs.

Over half (57 per cent) of SME leaders claim their company is worse off since legislation introduced in the Budget, with just five per cent stating they are better off.

It seems that the UK’s smallest businesses have been hardest hit, with 68 per cent of those in organisations employing between five and 19 staff feeling worse-off since the Budget, compared to 47 per cent of those with between 100 and 249 employees.

The Government’s plans to introduce legislation banning income-shifting from 2009 have also proved deeply unpopular with entrepreneurs, with 43 per cent of those running family businesses claiming it will increase their tax bills.

One in ten (nine per cent) claim they will stop employing family members if the legislation goes ahead, whilst 13 per cent say they will be forced to set up their business in a different form.

Andrew Jupp, Tenon’s national head of tax, said that entrepreneurs from both small and medium sized businesses were the backbone of the UK economy, which is why he believes it is essential that the Government listens to their concerns and provides them with the support they need, particularly at such a difficult time.

“Brown is confident that he can steer the country through the current rough waters, but with this research, entrepreneurs are sending a clear message that the Chancellor needs to step up and prove that he takes them seriously by cutting red tape and developing policies which help, rather than stifle, UK enterprise,” he added.

Jupp said that only time would tell if this will happen, or whether Cameron and Osborne would capitalise on the opportunity presented to them.

The research also reveals that entrepreneurs in the finance, insurance and real estate sectors are most strongly supportive of the Conservatives (74 per cent), perhaps in reaction to pressures associated with the recent credit crunch, whilst those in the retail and consumer goods field feel worst off since the last Budget (66 per cent).

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