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Latest NewsEconomics, government & business

Coalition government will focus on economic recovery and deficit, parties pledge

by Personnel Today 10 May 2010
by Personnel Today 10 May 2010

The economic recovery and reducing the national deficit will be “at the heart” of any coalition government, the leading political parties have pledged.

The promise follows fears from employers’ groups last week that the political wrangling over the formation of the next government could put the economy at risk and create uncertainty for businesses.

The political insecurity follows the general election last week, which saw the Conservatives fail to secure a majority at the polls, resulting in the first hung parliament since 1974.

Over the weekend, Tory leader David Cameron and Liberal Democrat leader Nick Clegg met to discuss the possibility of forming a coalition, while talks between each of the parties’ senior officials are expected to continue today, the Guardian has reported.

Danny Alexander, the Lib Dems’ chief of staff, said: “We’re agreed that any agreement made will have deficit reduction and economic stability at its heart.”

Cameron previously said any coalition government with the Lib Dems would still implement “the bulk” of the Conservative manifesto, with the leader insisting policies including cutting the deficit this year, a cap on immigration, and the reversing of the national insurance increase would be retained.

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Gordon Brown and Clegg have also held face-to-face meetings to discuss the possibility of a Labour-Lib Dem coalition.

In the meantime, Brown remains prime minister and Labour are continuing to conduct the business of government.

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