General Election 2015: Uncertainty prompts firms to delay investment plans

ALMOST a fifth of SMEs across in the West Midlands are delaying investment decisions due to uncertainty over the outcome of the General Election, according to a new survey.
 
The findings come from the latest Close Brothers Business Barometer, a quarterly survey that seeks the opinion of SME owners and managers from a range of sectors across the UK.
 
Martin Baker, Regional Sales Director for Close Brothers Invoice Finance in the West Midlands said: “The General Election is fast approaching which of course is having an impact on decision-making at many firms.
 
“In the upcoming election, there are two key sources of uncertainty; the prospect of another coalition government and the possibility of an EU referendum. Both could have significant consequences for business and so it is understandable that some are holding back from making important business decisions pending a clearer picture of the future.”
 
The survey further found that help understanding alternative finance options is the most important issue for the post-election government to address for almost two fifths of firms in the West Midlands.
 
“The latest Business Barometer showed that 77% of SMEs in the region do plan to invest in their business during 2015 so let’s hope that uncertainty around the election will not affect their intentions,” said Mr Baker.
 
“Our survey also shows that access to finance continues to be a stumbling block for many firms, with almost half saying that it is as difficult to access finance now as it was this time last year.
 
“Cash flow is the lifeblood of business and we hope that enabling access to appropriate finance is high on the agenda for the post-election government so that SMEs are in a strong position to invest and seize opportunities when decision-making is back on the agenda.”