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Gloucestershire Business News

General Election 2017: What does the result mean for business?

Leading business organisations have today given their reaction to the result of the General Election.

The Federation of Small Businesses (FSB) is calling for political stability and a delay to the beginning of Brexit talks.

FSB national chairman Mike Cherry said: "In the coming hours and days, business needs immediate reassurance from the government that emerges about how it will protect the economy from any political turmoil.

"The UK must be seen to remain open for business, with a government committed to supporting enterprise.

"It is important to go into the Brexit talks from a position of strength, focused on getting the best deal possible for trade and access to workers and skills.

"Negotiations should be led by a government and a Prime Minister that will be in place for the duration, and so we call for a delay to the scheduled start of negotiations rather than a rush to begin in 11 days' time.

"The need for a transition period now becomes even stronger, providing the time to get Brexit right.

"In the days ahead, FSB members will want to see ministers appointed and a clear timetable for the coming weeks.

"We are ready to work with the government and all parties on what measures to bring forward.

"FSB secured a number of important commitments for small business in many of the party manifestos in this election, and we believe there will be strong support in the new Parliament for many of our asks - on business rates reform, on protecting the self-employed from unfair tax rises, and on tackling late payments by big companies to their small business suppliers.

"FSB has consistently engaged with major parties right across the political spectrum and will work positively and constructively with the government that emerges, and MPs and Peers across all parties."

Dr Adam Marshall, director general of the British Chambers of Commerce (BCC), said the result created further uncertainty for businesses.

"After two long years of elections, referenda and wider uncertainty, many businesses were doing their best to ignore the noise of politics - up until today," he said.

"The electorate's split decision generates further uncertainty for business communities, who are already grappling with currency fluctuations, rising costs, and the potential impacts of Brexit.

"The formation of a workable administration that can give voters and businesses confidence around economic management must be the immediate priority.

"Whilst companies have for many months done their best to screen out political noise in order to focus on their own operations, this result will prove much harder for UK businesses to ignore. The swift formation of a functioning government is essential to business confidence and our wider economic prospects.

"Businesses are adept at forming alliances and coalitions when important interests are at stake. We should expect the same of our politicians."

On the timetable for Brexit negotiations, which are scheduled to begin in less than a fortnight, Dr Marshall added: "No business would walk into a negotiation without clear objectives, an agreed starting position, and a strong negotiating team.

"It is hard to see how Brexit negotiations could begin without answers on these important questions."

Stephen Martin, the director general of the Institute of Directors, said: "Businesses have shown in the last year that they are resilient to surprise results, but they have now been thrown into political limbo.

"With crucial Brexit negotiations coming up fast, in addition to the significant domestic challenges we face, the lack of a government with a majority undeniably creates uncertainty.

"The pound has predictably fallen on the news of a hung parliament, but the majority of British business will be waiting to see whether a stable government can be formed in short order.

"If the Conservatives govern as a minority, they must recognise that they have not earned a mandate to implement their manifesto in full.

"Now is the time to move on from the rhetoric of the election campaign and focus on preparing for Brexit talks.

"The issues of access to EU markets and the need for skilled workers are still paramount, and Brussels will be keen to get negotiations underway soon.

"But Ministers also cannot take their eye off the ball on important long term issues such as renewing the UK's infrastructure, making sure our education system keeps up with developing technologies and business models, and our tax system is competitive and reflective of today's economy. To do this, it will be vital that the voice of business is listened to, in a way that was not always the case in this election."

"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."

Kevan Blackadder, director of Cheltenham BID, said: "I said when Theresa May called the snap election that it wasn't what businesses needed because they were crying out for stability.

"As it has turned out, the instability it caused is going to continue for some time to come.

"Whatever happens in the coming days, it is going to take longer to take decisions that will bring that stability back to both businesses and our communities.

"Mrs May took a political decision to go to the electorate that has backfired spectacularly and in some ways it is now down to companies in Gloucestershire to do what they always do best. That is to get on with running their businesses efficiently and effectively."

The general secretary of the TUC, Frances O'Grady, said: "This election was about bread and butter issues - what needs to change for ordinary working people. And no wonder.

"If current trends continue, in five years' time 3.5million people will be in insecure work, and the average wage is still £1,200 less than it was in 2008.

"The next government must deliver a new deal for working people.

"They should implement popular policies from the campaign, like banning zero-hour contracts, pushing up the minimum wage and delivering a long overdue pay rise for nurses, midwives and all public servants.

"And it's clear that there is no mandate for a no-deal Brexit.

"The government should go back to the drawing board and negotiate a Brexit deal that puts UK jobs, decent wages and workers' rights first."

What do you think about the General Election result? Email mark@moosemarketingandpr.co.uk 

Picture credit: flickr; used under Creative Commons licence 

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