THERE has been a dramatic drop in business confidence and huge concern over political uncertainty and its impact on the UK economy, according to the first poll of business leaders since last week’s general election.
Company directors say they see no clear way to quickly resolve the political situation and 59 per cent felt that a further election this year would have a negative economic impact.
Nearly 700 members of the Institute of Directors (IoD) took the survey and 92 per cent thought the political make-up of the government was a concern; 58 per cent wanted clarity on the status of EU workers in the UK and vice versa; and 38 per cent wanted to see a speedy agreement with the European Union (EU) over transitional arrangements surrounding Brexit.
The overall priority for the new Government according to IoD members who have taken the survey, must be reaching a new trade deal with the European Union.
On the domestic front, work to deliver a higher skilled workforce and better quality infrastructure is considered vitally important.
Stephen Martin, IoD director general, said: “It is hard to overstate what a dramatic impact the current political uncertainty is having on business leaders, and the consequences could – if not addressed immediately – be disastrous for the UK economy.
“The needs of business and discussion of the economy were largely absent from the campaign, but this crash in confidence shows how urgently that must change in the new Government.
“It was disheartening that the only reference the Prime Minister made to prosperity in her Downing Street statement was to emphasise the need to share it, rather than create it in the first place.
“With global headwinds and political uncertainty at the front of business leaders’ minds, it would be wise for this administration to re-emphasise its commitment to a pro-business environment here at home.”
Martin added: “Business leaders will be acutely aware that Parliaments without majorities are more prone to politicking and point-scoring than most.
“If we do indeed see a minority government, both sides of the aisle must swallow their pride and work on a cross-party basis on the most important issues.
“The last thing business leaders need is a Parliament in paralysis, and the consequences for British businesses and for the UK as an investment destination would be severe.
“Saying this, there is also little appetite for a further election this year, and, indeed, business leaders are keener to see the new government get to work in Brussels and on the domestic front.
“Ensuring negotiations start well, and deliver higher quality skills and infrastructure across the country, must be the priority.”
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