General election 2017: East Midlands reaction

Business leaders from across the East Midlands have said that the main political parties need to set out their vision for the UK economy – or risk damaging businesses.

Theresa May has announced her intention to call a snap general election for 8 June.

May has said that her U-turn form her previous position that she wouldn’t call an early general election was intended to prevent the uncertainty of an election in 2020 interfering with crucial stages of Brexit negotiations.

Scott Knowles, chief executive at East Midlands Chamber, said: “As a general rule, business doesn’t like elections because they create instability, and this one appears to be creating uncertainty in already uncertain times.

“It could be damaging to the UK economy at a time when business had appeared to have conquered the initial fears over Brexit and coped with the fall in the value of Sterling resulting from the ‘Leave’ vote. Our latest Quarterly Economic Survey has shown that business has been doing better since the EU Referendum than anyone predicted.

“What is really important now is that all Parties clearly articulate what they stand for, without any of the bombast or rhetoric of recent ballots, and to show they are considering much more than just Brexit. There are a multitude of domestic issues that need to be managed and we would call on all candidates to make clear to business what their plans are for strengthening the economy now, during Brexit negotiations and post-Brexit.”

Carolyn Fairburn

Carolyn Fairbairn, CBI director-general, said: “With a snap general election now called, businesses will be looking to each political party set out their plans to support economic stability and prosperity over the next Parliament in a way that is fair and sustainable for communities across the UK.

“Distraction from the urgent priorities of seeking the best EU deal and improving UK productivity must be kept to a minimum.

“Firms will want to hear commitments from all parties to work in close partnership with business and back a new Industrial Strategy to make the UK economy the most competitive in the world by 2030.

“It is essential to get the UK’s foundations right, from building a skills base for the next generation, to investing in infrastructure, energy and delivering a pro-enterprise tax environment.

“As EU negotiations now get underway, firms are clear about the serious risks of failing to secure a deal and falling into World Trade Organisation rules. It is vital that negotiators secure some early wins and all parties should commit to working to ensure businesses can continue to trade easily with our EU neighbours, while seeking new opportunities around the world.

“Whoever forms the next Government, they should seek to build a partnership between business and government that is the best in the world, based on trust and shared interest.”

Nigel Baxter, managing director at Renault trucks dealer RH Commercials, who was prominent in the Leave campaign last year, said: “The Prime Minister’s decision, although a surprise, makes good sense for business.

“We are all leavers now whichever box you ticked last June, and it makes good sense that in order to negotiate the best deal possible with the EU that she and her government – who I am sure will be returned – have a strong majority in order to counteract the frustration tactics of Labour, the Liberal – but not so democratic party – and the SNP, for it is that which has the potential to damage business in the East Midlands and the wider UK.”

Chris Frostwick

Chris Frostwick, partner and practice leader of Grant Thornton’s Leicester office, said: “The call for a general election comes at a critical juncture as the UK starts to redefine and renegotiate its place in the world post the EU referendum and triggering of Article 50.

“Manifestos are no doubt being drafted, and we expect to see these soon. We would hope that each party will address some fundamental outcomes that government must deliver on to help build a vibrant and sustainable UK economy.

“We need a vision for Britain that is clear on the contribution we can make to the global economy, not just what we can take from it. We have world leading industry expertise in a host of areas, not least fintech, services and creative industries. A long-term plan setting out government support for U.K. and international growth is key to securing future success for the U.K.

“Additionally, businesses and public services see addressing the huge talent deficit they are facing as needing priority attention. The development of a focused programme to help UK business develop and access the talent it needs for current delivery and future growth is critical.

“We know that many of the challenges and opportunities facing the UK cannot be solved by government alone and we urge all parties to consider how they engage the private sector and communities in forging plans to deliver the future. To shape a vibrant economy.”