The economy in Gloucestershire will suffer as Boris Johnson clings to power say business leaders.

The Prime Minister has left the country in a "state of paralysis" which will have far reaching consequences, said Ian Mean, director of Business West and vice chairman of GFirst LEP board.

Mr Johnson finally resigned yesterday (Thurs) after a cabinet revolt over his leadership but wants to stay on as PM until the party chooses a successor.

Mr Mean said: "In his farewell speech that was no sort of conciliation, just absolute arrogance."

Sam Holliday, business development manager for the Federation of Small Business in Gloucestershire, said: " If you throw in the towel, you leave the room and because you're defeated.But he's stayed in the ring.

"From a business perspective I don't know who's running the county. We have had three chancellors in the last four days. It's chaos. If it had been a quiet time in the world ok but we are semi involved in the war and have the worst cost of living crisis in years.

"The idea of having a lame duck PM means no one is going to take him seriously, here or internationally.

"Please Mr Johnson just go and let someone else take over because business needs a proper PM and cabinet."

He believes deputy PM Dominic Raab should step into the top job in the short -term.

Mr Mean agreed the PM should go immediately as businesses need a clear vision.

He said a "chink of light" was Greg Clark being announced as the country's new levelling up secretary,

"I hope he will steady the ship a bit but the problem is we will get no decisions."

David Owen, chief executive of GFirst LEP, fears a huge announcement due to be made by the PM and Chancellor on July 12 about the economic strategy of the country will now be delayed until the autumn.

He said: "The thing businesses want all the time is a bit of consistency and certainty in the approach from the government because the world is a really uncertain place at the best of times.

"Energy prices are going through the roof for businesses and they are really struggling to pay for it. The reality is we have still got a pandemic going on with infection rates and hospitalisations going up.

"We need the government to make decisions about the economy. But I can't see that speech happening which leaves businesses in uncertainty."

Neill Ricketts, CEO of Versarien PLC, agreed Mr Clark was a good appointment but that we had still been left with "no government" after circa 55 MPs resigned. He worries the leadership race will be a "massive distraction" which businesses don't need.

Talitha Nelson, CEO of Gloucestershire Foundation Trust, said ousting Mr Johnson without a succession plan was "utterly disastrous and quite frightening"

She added: "It leaves us so vulnerable with the war going on."