Business leaders welcome coalition
THE new coalition has been well received by business groups who say its mandate will give it the power to take the tough decisions required to rein in national debt.
Richard Lambert, the CBI’s director-general, described the agreement between the Conservatives and the Liberal Democrats as “welcome news”.
“Business wants to see a stable government with the authority to take the tough decisions that will be required to keep the economic recovery on track and to get a grip on the fiscal deficit. This coalition should have the votes and the mandate to get on with the job,” said Mr Lambert.
“In the past few days, leaders of all three of the main political parties have emphasised their commitment to restoring fiscal stability in the national interest. That must be their overriding priority in the months to come.”
Jerry Blackett, chief executive of Birmingham Chamber of Commerce and Industry (BCI), said: “We desperately need a period of stability and look for measures that will encourage owners and managers to have the confidence to invest in their businesses.
“This will in itself preserve jobs and create opportunities. Businesses will also be encouraged by the scrapping of the proposed increase in employers’ National Insurance contributions next year.
“We are particularly keen to hear plans for reducing Britain’s record £163bn deficit and where the cuts will fall in the Tories’ proposed £6bn of spending cuts this year. This should be announced with the utmost speed to eliminate doubt.
“There are lessons for the new government from our experience here in Birmingham, where we have worked with a coalition council for five years.
“It has become obvious to us that it is vital that parties park their political prejudices and ensure that personalities of different political persuasions quickly learn to work together.”
Businesses in Coventry and Warwickshire have urged the new coalition Government to provide the base for a sustained economic recovery.
Louise Bennett, chief executive of the Coventry and Warwickshire Chamber of Commerce, said the Conservative/Liberal Democrat alliance had to give business the freedom to grow and create jobs.
She said: “Businesses in this region were concerned about the effects of a hung Parliament but, thankfully, the decision to form a coalition hasn’t dragged on for too long.
“On the face of it, we have a relatively stable Government formed from this coalition and it is vital now that they work quickly to introduce measures that put business growth firmly at the centre of policy.
“A clear plan to cut the deficit must be presented but it cannot be at the detriment of the country’s infrastructure which is crucial for the economy to grow.”
She said the recovery had to be business-led. Therefore, rolling back the proposed increases to employer contributions to National Insurance and cutting red tape would be a good start.
Miles Templeman, director-general of the Institute of Directors, said: “The key test facing the Conservatives and Liberal Democrats is whether they can maintain a stable government over a significant period of time that delivers large cuts to public spending now, and whether they can generate policies across all areas that genuinely support business growth.
“Each party has favoured or protected areas of public spending that are uniquely their own. Unless both show a willingness to make some sacrifices, there is a danger that tax hikes become the main tool to fix the public finances.”
Labour peer Lord Kumar Bhattacharyya believes the new Prime Minister will be good for both the Midlands and manufacturing.
And Lord Bhattacharyya, who despite his political affiliation has strong links with Conservative leaders going back to the days when he advised Lady Thatcher, urged the Midlands to support the David Cameron led coalition.
He said: “I am delighted the waiting is over and a new government has been formed.
“I don’t think the Midlands has anything to worry about. The Midlands is a manufacturing region, the Conservatives have voiced their support for manufacturing, and the Midlands needs to support those who support and champion manufacturing.
“Backing for the automotive industry is vital and they have already pledged that backing.
Highlighting Tory initiatives such as the Dyson Report – it called for more support for science teachers and tax breaks for high-tech firms to conduct research – Lord Bhattacharyya, head of Warwick Manufacturing Group, predicted the new administration would put greater emphasis on manufacturing jobs while hopefully reducing red tape.
The Forum of Private Business said it hoped the deal would mark the start of a stable and functional administration, committed to ensuring economic recovery.
Chief executive Phil Orford said: “There’s no doubt that the past week has been an anxious and worrying time for small business owners. Smaller firms urgently need some degree of certainty so they can begin to plan for the future. Hopefully, Mr Cameron’s appointment will herald the beginning of a workable government which will ensure economic stability and give smaller firms the confidence to aspire and grow.”
He added: “I would just like to reiterate the Forum’s previous calls for politicians of all political persuasions to show responsibility and put aside their differences in order to avoid pushing the UK into further economic turmoil. It is imperative that our MPs put aside point-scoring and work together to make Britain a stable and prosperous place to run a business.”
