A poll by the Federation of Small Businesses (FSB) reveals that 54% of small businesses are planning not to expand following the election result.
I am not surprised. The simple fact is, that for a small business to expand, it needs confidence that customers will be there to buy its products in the future and have the financial means to do so.
The poll also revealed that 52% want action taken by government to reduce the budget deficit sooner rather than later, 44% want to see the banking system reformed and 38% want the government to take steps to steady the financial markets.
I believe that what is necessary is a firm plan to reduce the deficit (whether immediately or at some specific point in the not-too-distant future) and a government with sufficient stability to see it through. The mathematics of the election indicate that only a Conservative/LibDem coalition will achieve this. A minority government, whether it be a Labour/LibDem coalition or a Conservative one, will only increase the likelihood of further political instability and another election within a year. This will mean that many small businesses will simply take a wait-and-see attitude to growth.
Here’s hoping that politicians stop playing politics and start listening to what small business really needs.
Gary Cousins
Business Solicitor and worried voter
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