Most businesses fear hung parliament, survey shows

Two-thirds of employers fear the prospect of a hung parliament in the forthcoming general election, a survey has shown.

The poll of 300 firms by the British Chambers of Commerce (BCC) found that 65 per cent of businesses are “concerned” or “very concerned” about the likelihood of no party winning a majority in the House of Commons.

Only 13 per cent of respondents thought a hung parliament, which has become more likely after the Liberal Democrats enjoyed a surge in the opinion polls, would be a good thing.

David Frost, director-general of the BCC, said: “Instinctively, companies prefer a clear mandate to lead and govern. With our economy still fragile and the public finances in a dire state, the overwhelming concern is whether a hung Parliament will provide decisive action around the UK’s unsustainable deficit.

“Whatever the outcome of the election, whether we have a coalition government or not, we must see a credible plan to reduce the deficit and restore confidence within 90 days.”

The study also found that most companies believe that VAT would increase after the election.

Source People Management