General election: Business welcomes result but wants clarity on Europe

Amid sighs of relief from business over the election result on Friday morning there were immediate demands for bolder action to rebalance the economy and to confront the vexed question of UK membership of the EU.

"We've got the possibility of a government that can actually make bold decisions and get on with what needs to be done," said John Longworth, director-general of the British Chambers of Commerce. "And they won't have any excuses."

"You've seen what's happened in markets - [the result] is clearly welcome," said John Cridland, director-general of the CBI, who nevertheless warned the new government to avoid "knee-jerk solutions" on issues such as devolution. "We can now get on with more ambitious plans to get the deficit down, focusing on the big areas like investment in infrastructure."

Mr Longworth said a referendum on UK membership of the EU should be held as soon as possible.

Terry Scuoler, chief executive of the EEF manufacturers' group, warned of the negative impact of more "drift and dithering". "Early on [David Cameron] should put himself and his new government behind the clear interests of winning this referendum."

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Mr Cridland said the PM had an EU strategy that business could "get behind". "But we need to land genuine reform and make these reforms stick [before a referendum is held]," he said.

Mr Scuoler said a "Brexit" would be "extremely damaging" to industry and that a narrow majority could make the government more vulnerable: "Thirty or more hardline eurosceptics could potentially hold this government to ransom," he said.

Simon Walker, director-general of the Institute of Directors, said: "Our members support the principle of a referendum but they want to stay in a reformed Europe and then to see that referendum won," he said.

Mike Cherry, policy director at the Federation of Small Businesses, said the big issues for his members were late payments to suppliers, the reform of business rates and broadband access.

Emma Jones, founder of Enterprise Nation, the small business network, agreed.

"What we'd like to see now is the Tories deliver on their small business manifesto, including more investment in super fast broadband for entrepreneurs," she said.

Downing Street is expected to step up efforts to co-ordinate the business voice on Europe although the various lobby groups were scrambling to react to the unexpectedly clear election result on Friday.

Sir Roger Carr, chairman of BAE Systems, and a backer of the pro-EU Business for New Europe, said the UK had secured a "pro-business" government, but "it is now up to business to speak up and secure the country's position in an improved Europe".

Roland Rudd, chairman of PR company Finsbury and founder of Business for New Europe, said: "The campaign starts today and I'm confident it will galvanise overwhelming business support."

Matthew Elliott, chief executive of Business for Britain, said an EU referendum was now a "welcome certainty". Alan Halsall, the group's co-chairman and chairman of the Silver Cross pram maker, was jubilant.

"It's absolutely tremendous, absolutely brilliant," he said. "At last this scaremongering [over the impact of a Brexit] hopefully will be at an end."

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Several business leaders said they hoped the replacement for Vince Cable as business secretary would have as strong a voice in government.

"After five years of working with Vince, I felt he and the CBI worked very effectively together," said Mr Cridland. "It's very very important that the secretary of state for business is a big hitter and carries the PM's ear."

"Vince was a good business secretary and he made some real progress in areas like boardroom diversity," said Mr Walker at the IoD. "But David Cameron is spoilt for choice in terms of people he could put in to that position."

Mr Walker said he would be in touch with the Labour party and help it "rethink" its approach to business.

"Peter Mandelson is still the benchmark for an outstanding business secretary," he said. "The Labour party should be positive about wealth creation."

Additional reporting by Peggy Hollinger

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