Hung Parliament Creates Business Problems

With the recent election result creating an uncertain outcome, business leaders are calling for MPs to put aside their differences and create a functioning administration as soon as possible.

Many voters believe small to medium-sized enterprises (SMEs) are crucial to Britain’s economic recovery, with the potential to create jobs and spearhead innovation. Most are concerned that the uncertainty and confusion caused by the hung Parliament will jeopardise this and hamper business owners’ attempts to plan ahead.

Recent Forum research found that almost three quarters (70%) of small business owners were already finding it difficult to plan for 2010, even before the election result. With a hung Parliament potentially threatening to hold up tax and spending proposals aimed at tackling Britain’s record deficit, this uncertainly is likely to increase further.

“I expect many smaller businesses will be disappointed that the election has resulted in a hung Parliament. However, the outcome can’t be changed so it is vital that the newly-elected MPs put aside party politics and work together to come up with a credible system of governance,” said Phil Orford, forum chief executive.

“With the economy still in a very precarious state and a mountain of public debt to be tackled, businesses owners need our elected representatives to move away from inter-party point-scoring and show political responsibility,” he added.