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Latest NewsEconomics, government & business

Small business calls for post-election clarity and credible governance system

by Louisa Peacock 7 May 2010
by Louisa Peacock 7 May 2010

Small businesses have urged politicians to come up with a credible system of governance as the country is on track for a hung parliament.

The Forum of Private Business (FSB) is calling on MPs to put aside their differences and create a functioning administration as soon as possible.

No party looks set to win an overall majority at the polls, meaning the UK is on track to have a hung parliament for the first time since 1974.

The organisation has echoed concerns from other business groups, including the British Chambers of Commerce, that uncertainty and confusion caused by a hung parliament will jeopardise the UK’s economic recovery.

FSB chief executive Phil Orford said: “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.

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

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The FSB made renewed calls on the next government to completely scrap the planned rise in national insurance contributions. The Conservatives have pledged to cut the rise for the lowest-paid workers.

A recent FSB survey found that 68% of small businesses felt that the tax burden was already unfair for small employers, and 65% said that taxes overall were a serious problem for their business.

Louisa Peacock

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