While the EIU are telling SMEs to relax over the prospect of a hung parliament, a BCC report suggests growing tensions amongst business owners over the election outcome.
Tory leader David Cameron and Prime Minister Gordon Brown are united on one issue: a hung parliament could weaken the economic recovery.
However, the Economist Intelligence Unit (EIU) has commented that SMEs should take the prospect of a hung parliament "in their stride", and also suggested there are significant advantages to "politicians working together".
65% of SMEs are "concerned" and believe a lack of clear governmental policy could affect crucial action being taken to cut the budget deficit
Meanwhile, the British Chambers of Commerce’s (BCC) recent monthly business survey suggests SME owners are still edgy. 65% of SMEs are "concerned" and believe a lack of clear governmental policy could affect crucial action being taken to cut the budget deficit. A further 22% are "not concerned" about a hung outcome though, while only 13% think a hung parliament would be "a good thing."
"Businesses are right to be wary about the prospect of a hung parliament. 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," says director general of the BCC, David Frost.
Frost continues: "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."
