Small Business and Company Formation Groups Call for Stability

After days of debating and negotiation, a deal has been made between the Conservatives and Liberal Democrat parties to form a coalition government, consequently, last night, Gordon Brown resigned as Prime Minister. Mr Brown tendered his resignation to the Queen who offered the role of Prime Minister to Conservative leader David Cameron.

As Mr Cameron addressed the numerous journalists, Conservative party members and his new staff. His tone, while positive was by no means a soaring rhetoric reminiscent of the last Tory Prime Minister’s – Margaret Thatcher – acceptance speech in which she quoted Francis Assisi. No, throughout his speech Mr Cameron spoke several times of the difficulty ahead and the potential difficulty of a coalition government. A sentiment echoed by both the SME and company formation sector, if recent reports are to be believed.

According to independent reports, by both the Forum of Small Business and the Federation of Private Enterprise, many recently formed companies and small businesses are extremely dubious about a Coalition and feeling that the impact on enterprise could be catastrophic, with over fifty per of all respondents claiming that the they have lost faith in the future of the British economy.
David Male, founder of the FPE, comments; “As our report reveals most small business owners would like there to be an overall majority government in the House of Commons. Many feel that while the previous administration could have done more to support enterprise in the UK, having two parties in power who have radically different ideology, will result in inconsistent policies.”