The public sector has to redefine itself, work better with business and improve its measures of success, according to business leaders around the world.

The survey by professional services firm PwC found that governments and regulators were second only to customers in their impact on business plans.

The PwC 19th annual survey found that business leaders only 27 per cent of CEOs believe economic growth will improve this year, down 10 per cent on last year.

And confidence in CEOs about increased revenues for their own companies was also down — a fall of 4 per cent to 35 per cent compared to 2014.

Darren Johnston, CEO of PwC’s Caribbean region, said: “In addition, CEOs see the need to pay attention to wider stakeholder needs, with government and regulators only second behind customers in their impact on organisations’ strategies.

“This may provide public sector bodies with more opportunity to work with business to co-produce the societal outcomes that the public wants and needs.”

He added: “The challenge remains for public-sector organisations to ‘do better for less’ and strategically manage their costs in the face of budgetary pressure and ever-increasing demands on public services.

“In this context, it is essential to take a fundamental look at the purpose of public bodies, to build the digital capability of public-sector organisations and boost the agility and resilience to cope with future changes.”

The survey canvassed opinions from more than 1,400 CEOs, including some from state-backed enterprises and government representatives.

The report found that business bosses want governments to redefine their purpose and to restore public finances, with 71 per cent somewhat or extremely concerned about the problem.

And it said state-owned enterprises, regarded as an influential force, should be “actively owned and managed by their government backers, which needed those in key roles to have a clear idea of what their objectives were and the time and expertise to carry them out.

Mr Johnston said: “Together business, labour and government can deliver what people really want, by putting service, value for money, accountability and the interests of societal stakeholders at the heart of the purpose and mission of our public bodies.”

The survey also found that, in a “wish list” of priorities, 56 per cent of CEOs wanted a clear, stable and effective tax system, while 53 per cent identified a well-educated and adaptable workforce as a priority and half said a physical and digital infrastructure was vital.

The report said: “Acquiring the right skills is clearly an essential prerequisite to the desired outcomes for citizens, particularly new entrants to the labour force, of getting a job and earning a decent income.

“But another key issue is matching people to opportunities so that the right skills are in the right place at the right time.

“In addition, business needs effective, efficient and sustainable infrastructure — the backbone on which economic success and prosperity can grow.

“In particular, transport, which is so important for connectivity nationally and internationally, needs particular focus.”