Hung parliament alarms UK business

Δημοσιεύθηκε: 6 Μαΐου 2015 - 13:46

Business leaders expect a Conservative-led coalition to win Thursday's UK general election and have warned that any delay in forming a new government would harm their company.

Forty-three per cent of the 600 UK companies surveyed by professional services firm KPMG said they expected a Tory-led coalition to win, compared with 26 per cent for a Labour-led coalition.

Opinion polls suggest that neither of the main parties will secure a clear mandate, with the latest results indicating that David Cameron will finish with the largest number of seats but well short of a Tory majority.

In the event of a hung parliament, potentially protracted cross-party negotiations will be held to form a government, with almost two-thirds of survey respondents warning that any delay in forming a new government would harm their business.

"Businesses expect, and would prefer, a Conservative-led government," said Simon Collins, UK chairman of KPMG. "But managers are worried about uncertainty and the potential for intervention and even demonisation from politicians."

While business is more optimistic about growth prospects under a Conservative government than under Labour, a victory for Mr Cameron would lead to a potentially unsettling referendum on UK membership of the EU.

Fifty-seven per cent of respondents said the prospect of an EU referendum was harming their industry, while almost three-quarters agreed that talk of state intervention in some industries was undermining business confidence.

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>KPMG's results present a similar picture to a survey last week from accountancy firm Grant Thornton, which found that business leaders are more worried about "Brexit" than a Greek exit from the euro. Nearly two-thirds of those in the eurozone said a British exit from the EU would have a negative impact on the European economy, while just 45 per cent felt a Greek exit from the euro would be negative.

Mr Collins said UK businesses "are calling for balanced measures focused on careful management of the deficit, fair and stable taxation, and an immigration policy that allows companies to retain UK university educated skilled migrants".

Together the 600 UK companies surveyed by KPMG employ more than 1m people and have a combined turnover in excess of £200bn.

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