Small firms lack confidence after election, says FSB

Date: 11th May 2010

The hung parliament result of the recent general election has led to a loss of confidence among the UK's small businesses, according to one industry body.

A recently-published survey from the Federation of Small Businesses (FSB) has revealed that 54 per cent of smaller enterprises will put their expansion plans on hold following the result.

The snap poll was held after last week's election failed to deliver an outright winner, with none of the three main parties able to command the required 326-seat majority to form a government.

FSB national chairman John Walker said: "These figures worryingly show that small firms have lost confidence in the economy following the outcome of the election just as the business community was beginning to recover from the downturn.

"At a time of economic uncertainty small businesses really need a government - of whatever make-up - to get on with the job and set out a plan for dealing with the deficit and returning the UK economy to growth."

A number of negotiations have taken place over the last few days to see if any of the parties can agree to form a cross-party coalition government.

Posted by Jacob Williams