Initially, the SME and company formation sector were concerned that a Coalition government would result in a weak executive paralyzed by ideological differences and unable to make the difficult decisions needed to address the severe economic issues this country faces.
However , when the Queen opened parliament and gave a speech outlining David Cameron’s coalition’s plans to address the budget deficit immediately via a number of pro active measures, including cutting public spending by six billion, many small business and company formation owners were impressed by the strength of this new government.
Yet now, a month after the speech and in the context of proposed VAT increased and spiraling unemployment many small business owners are concerned about the impact of Cameron’s aggressive economic policy. One such person is Philip Morris, chief economist at the Forum of Small Business and Enterprise. He comments;
“When you compare the UK’s economic recovery to other world super powers its weak at best. Yes output is up, but only marginally. Cameron’s economic policy is strong in the fact that it has completely prioritized addressing the budget deficit over any political differences he and his Liberal Democrat- conservative coalition may have.”
“However, in the short term it will result in stunting the UK’s economic growth due to a loss of jobs.”