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Hung parliament 'is not a cause for concern' for UK businesses

Published on 30 Apr 2010 under category: legal

UK businesses should not worry about the chances of a hung parliament being elected next week, an investment expert has claimed.

In a recent survey by the British Chambers of Commerce (BCC), 65 per cent of UK firms polled said they were worried about the prospect of a toothless hung parliament.

However, industry expert Michael Baxter thinks that fears around the future of the economy are misplaced.

According to Mr Baxter, the differences between the Liberal Democrats and the Conservative party's spending plans are very "subtle".

"If you look at how the markets performed since Nick Clegg has been performing well in the opinion polls, you'll see that the markets aren't buying into this idea either.

"There has been no significant fall in the pound since the debate, the week before last, when Nick Clegg did so well [in the leaders' debate]," he commented.

Despite speculation about the expected impact of national insurance contributions hikes and VAT rises, 13 per cent of the businesses surveyed by the BCC said that a hung parliament could be good for UK firms.

The UK has only had a hung parliament twice in the past century – once in 1929 and in 1974.