Labour government ‘will be good for business’, say North West firms

The majority of North West companies believe the new Labour government will be good for business.

A poll of 400 firms across the region, commissioned by Bury and Bolton-based law firm, Clough & Willis, one month after Labour’s landslide July 4th General Election win, has shown that 36% of companies believe that the new government will be good for business, while 55% think Labour will be better, or about the same, as the Conservatives at helping companies to grow.

The survey also showed that just seven per cent of respondents who are considering selling their company are accelerating that process, despite the potential rise in Capital Gains Tax which many analysts think may be announced in the next Autumn Statement, or Spring Budget.

When it came to what business owners would like to see introduced to help them drive growth, 50% wanted more funding for employee training, 43% wanted easier access to funding and grants for investment, 21% wanted more advice and support around how technology can aid growth, while 14% wanted more support with R&D.

In terms of international markets, 43% want to see an urgent renegotiation of the existing trading relationship the UK has with the EU.

Meanwhile, 10% want more direct support around how to enter new markets, and 14% think extra support around import and export issues would be beneficial.

Andy Herricks, partner and head of corporate and commercial at Clough & Willis, said: “Our survey produced some surprising feedback. 

“With the Labour hierarchy being very tight-lipped and coy before the election about potential rises in capital gains tax and corporation tax, political commentators were predicting a backlash against the new government.

“That, however, has not materialised and business leaders seem to be maintaining a watching brief for the time being.”