Business owners are pleased that a coalition has been formed which provides a majority government to end the uncertainty of the last few days and that the new government is tackling the deficit immediately.
Business groups and the Bank of England governor Mervyn King have backed the new government's £6bn deficit reduction plan. Mr King backed the plans for immediate cuts in an attempt to cut the UK's largest ever-peacetime deficit.
Business groups and the Bank of England governor Mervyn King have backed the new government's £6bn deficit reduction plan
Company owners have also backed the new Liberal Democrat and Conservative coalition government's decision to scrap the planned 1% hike in employers' national insurance (NI).
The ‘tax on jobs' had been scheduled to take place in 2011 - when many analysts anticipate small businesses will be seeking to recruit in earnest in order to meet renewed demand.
"Small businesses did not want this tax on jobs because clearly it would have been a major barrier to staff retention and job creation and would have hindered economic recovery," said Phil Orford, chief executive Forum of Private Business (FPB).
Cameron's new cabinet comprises members of both parties, including Nick Clegg as deputy Prime Minister, George Osborne as chancellor and Vince Cable as secretary of state for business and banking. Cameron and Clegg have promised to serve a full term of five years together before the next general election is called.
"Hopefully, Mr Cameron's appointment will herald the beginning of a
workable government which will ensure economic stability and give
smaller firms the confidence to aspire and grow,” commented Mr Orford.
“I would just like to reiterate the
Forum's previous calls for politicians of all political persuasions to
show responsibility and put aside their differences in order to avoid
pushing the UK into further economic turmoil.”
