With the General Election drawing to a close, YouGov have recently carried out a survey that shows that 50% of the 600 UK small business owners questioned, are of the opinion that a Conservative victory tomorrow night will encourage further investment in their companies.
Of the respondents, around 33% believe that the election will have very little effect on investment. More worringly, 27% of small business owners actually said that they would seriously need to consider job
cuts should the Labour Party retain power, possibly as a consequence of the planned rise in National Insurance Contributions.
In addition to this the survey also suggested that many small businesses are concerned about the prospect of a hung-parliament, with 31% believing that a coalition government with a dominant Labour party could seriously threaten economic recovery in the UK.
Many City analysts have cautioned that the British currency and our excellent credit rating could be seriously jeopardised by a hung parliament. Michael Hewson, CMC Markets currency specialist, stated:
“Ratings agencies said they would review the UK’s credit rating after the General Election – reading between the lines it means they will want to see some clear intent from whoever is in power to rein in the deficit.”
Wanting to allay fears of a Hung Parliament, Nick Clegg commented:
“Whatever the outcome on Thursday, I believe we should be prepared to work together to fix the terrible state of our public finances and ensure economic stability.”
Philip Hammond, shadow chief secretary to the Treasury, believes that it will be small businesses that create the growth and the investment the country needs. He added that the most recent poll by YouGov should be taken very seriously as it clearly indicates that a Tory government will create the most positive economic climate for small business to create jobs.
He went on to say:
“Britain’s small and medium businesses understand that only the Conservatives will cut Labour’s waste to stop the jobs tax and get Britain’s economy growing again”