Crimson Business - Passionate About Business

Published: 10 May 2010

Author: Startups.co.uk

There’s been much speculation that a hung parliament will be bad for business. Lobby groups including the FPB have, somewhat predictably, urged MPs to act in the best interests of business owners:

“I expect many smaller businesses will be disappointed that the election has resulted in a hung parliament,” said Phil Orford, chief executive of the Forum of Private Business (FPB) on Thursday.

Startups.co.uk asked some of the UK’s entrepreneurs what they think a hung parliament means for the UK:

Simon Lawrence, CEO at business insight specialist, Information Arts
“In my view a hung parliament would be disastrous for the country and the economy. Each party within the hung parliament is only going to be interested in furthering its own agenda and inevitably this will mean that the needs of consumers and businesses will become a secondary issue. “Imagine trying to pass contentious but necessary legislation where the parties are trying to leverage their positions – it’s bad enough in my board room, let alone in the House of Commons! The country needs clear and unambiguous leadership from a strong party with a mandate. Anything else will create uncertainty and can only have a negative effect on recovery.”

Neville Upton, CEO, The Listening Company
“Until the coalition is decided and the final outcome of the election is known, it is difficult to comprehend exactly how this hung parliament will affect business. “Ultimately, we need a government that will provide strong stewardship of the economy, keeping interest rates low and keeping the costs of doing business low. We need a government that is committed to investing in training and helping young people to get on the job ladder, and makes it attractive for banks to lend to business and individuals to invest in business.”

Jake Allen, co-founder of bespoke tailor King & Allen
 “A hung parliament is not good. This means more negotiation, wasted time and a great deal of plea bargaining between the parties to get any legislation passed and any decisions made. We are still facing a very tough economic environment, and this situation is going to hamper our government’s ability to respond quickly. Small businesses still need stimulus, we still need to get people back into work, and we need to get people spending again.”