Do UK businesses want a general election?
With the UK heading towards its third prime minister in three months, business leaders have responded with dismay to the UK’s political chaos and demanded economic stability.
Despite calls from the leaders of the opposition parties for the country to go to the polls, businesses are divided on an immediate general election, which could add to the government’s paralysis for several weeks.
Tony Danker, director-general of the Confederation of British Industry (CBI), UK’s largest business group, said recent political turmoil had “undermined the confidence of people, businesses, markets and global investors in Britain. That must now come to an end if we are to avoid yet more harm to households and firms”.
Shevaun Haviland, director-general of the British Chambers of Commerce, said the next prime minister needed to “return both political and economic stability”.
“The new administration must immediately set out how they plan to deal with soaring energy bills, labour shortages, spiralling inflation and interest rates,” she said. “Flip-flopping on policies has led to low consumer and business confidence.”
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Phil Smith, managing director of regional body Business West, called for "calm and competent government" following a period of "chaos and uncertainty".
"The resignation of Liz Truss and the leadership contest to appoint the third UK prime minister this year shows the political instability that has characterised the UK in recent weeks. This harms business certainty and viability just at a time that they need to plan for a difficult winter.
"Business West emphasises the need for calm and competent government to deliver strategic direction for the economy during a period of chaos and uncertainty."
Truss’s exit has left businesses uncertain of the government’s plan for policy issues such as taxes and energy subsidies.
Kitty Ussher, chief economist at the Institute of Directors, said: “Confidence in the UK economy — that was already running at very low levels, according to our data — is being hit further as a direct result of political instability in the UK government. This reduces investment, thereby constraining growth. Without stability and confidence, growth is impossible.”
Confidence among UK small business owners has dropped to its lowest level since the height of the COVID pandemic as they face rising costs and falling revenues, according to the Federation of Small Businesses (FSB).
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FSB national chair Martin McTague said companies were “crying out for an end to the political turmoil and a focus on remedying the economy, supporting small firms through the hard winter ahead”.
“Whoever becomes prime minister must knuckle down, see through the delivery of the energy support package for small businesses — as already approved by parliament — and the reversal of the hike in national insurance,” he added.
Company leaders have stopped short of asking for a general elections but several small business owners believe that it is the only way to restore confidence.
Amit Patel, adviser at Welling-based mortgage broker Trinity Finance, said: "Finally, Liz Truss has made the correct decision to resign as PM. We need a general election now, for the sake of the economy. The longer this merry-go-round of prime ministerial mediocrity continues, the greater the damage to our country that will be done.”
Fanny Snaith, a Cheltenham-based certified money coach, added: "Surely we need a general election? The Conservative party took weeks to choose Liz Truss, which clearly did not work. How can we trust them to choose another leader?
"Personally, I have no trust in the Conservative party now. They have been in power for 12 years yet behave as if they have just been elected. We are sick of levelling up and talk of growth. Surely it is time for the country to decide?"
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A survey of 1,000 small and micro business owners by PR platform Newspage found that nine in 10 (91%) demanded the country goes to the polls now.
Esme Marshwitch, owner of The Glassy Witch in Alton, said: "The farce that is British politics right now needs to end. Call an election and see who does get the mandate. It's going to be a poisoned chalice of a job to take on, but the frankly embarrassing attempts at clinging onto power by the current mob transcends party politics and is nothing more than naked self interest.
“Sweep the board clean and start over, hopefully with politicians who care about the country as a whole rather than just their own bank balances."
Another survey by Vodafone (VOD.L) suggested owners of small businesses across the country are bracing themselves for a turbulent and uncertain year ahead, with more than a quarter (28%) of small and medium size businesses admitting they won’t be hiring any new staff over the next 12 months due to the current cost of living crisis.
Liz Truss announced her resignation on Thursday afternoon, after only 44 days in the job.
