The votes are still being counted, and while it’s as yet unclear exactly what colour or shape the next government will be one thing is now certain: no party can achieve the magic 326 seats needed for a majority in the House of Commons. The UK has woken up to a hung parliament.
Although the Conservatives have won the most seats, as the current PM, Gordon Brown has the constitutional right to try to form a coalition first. However, even a mooted Lib-Lab pact might not be able to achieve a clear majority. Meanwhile, a Tory coalition or even minority government still can’t be ruled out.
But what will this mean for business? The past few weeks have seen lobby groups and politicians alike warning us that the UK needs stability and decisive action to restore the public finances; any government crippled by indecision could pose a serious threat to the UK’s economic recovery and make it hard for businesses to plan ahead.
“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) this morning.
We asked some of the UK’s entrepreneurs to tell us what they really think.
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.”
Stephen Bentley, CEO at Granby Marketing Services:“[It’s] a territory unknown where in European countries this has worked, but I cannot believe the amount of horse trading that will be done to unravel the stance of distance between the parties. The only people to be sold out will be the electorate.”
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.
“My hope now is that Labour and particularly the Liberal Democrats do what is best for the country and get behind the party with the most votes, the most seats, and get us in the best possible position to move forward.”
Dr. Liz Williams, founder and MD of global trading platform for female-owned businesses, Anzaja:“I voted Conservative. This Labour government has led us into a recession of outrageous proportions. A party which supports self-determination and self- sufficiency is critical. A ‘small’ efficient government is really important, for taxpayers especially in rural communities.
“A hung parliament is a disaster, no decisions will get made and we will have paralysis for months while political deals are brokered. What we need as soon as is possible is a supportive business environment, and the best possible outcome that can now be reached.
“I hope that whatever happens over the next few days, we end up with a government that will support SME businesses in managing their non-negotiable costs, simplify recruitment and staff management, get the banks passing on liquidity risk, and tap into the huge pool of business talent, both in the older generations and encouraging apprentice programmes.”