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09 June 2017

BBC: Business and City leaders call for reassurance


Politicians must act fast to reassure businesses in the wake of the election result, according to business leaders.

The result is a "serious moment for the UK economy", the CBI business lobby group said, and called for politicians to form a "functioning government".

British Chamber of Commerce bosses also called for a "workable administration" to build confidence.

The Institute of Directors demanded a focus on preparing for Brexit talks and to move away from political "rhetoric".

All business groups were keen to stress that uncertainty is the worst outcome for its members, who are struggling to come to terms with what shape the new hung parliament will take.

'Act responsibly'

CBI director general Carolyn Fairbairn warned: "The priority must be for politicians to get their house in order and form a functioning government, reassure the markets and protect our resilient economy.

"Politicians must act responsibly, putting the interests of the country first and showing the world that the UK remains a safe destination for business. It's time to put the economy back to the top of the agenda. [...]

Markets reacted to the news of the hung parliament by pushing the value of the pound lower, although the FTSE 100 share index opened higher.

'Further uncertainty'

Dr Adam Marshall, director general of the British Chambers of Commerce (BCC), agreed that a new government must be formed quickly.

"After two long years of elections, referenda and wider uncertainty, many businesses were doing their best to ignore the noise of politics - up until today," he said.

"The electorate's split decision generates further uncertainty for business communities, who are already grappling with currency fluctuations, rising costs, and the potential impacts of Brexit. [...]

Brexit focus

Stephen Martin, Director General of the Institute of Directors, said: "Businesses have shown in the last year that they are resilient to surprise results, but they have now been thrown into political limbo.

"With crucial Brexit negotiations coming up fast, in addition to the significant domestic challenges we face, the lack of a government with a majority undeniably creates uncertainty.

"The majority of British business will be waiting to see whether a stable government can be formed in short order. [...]

"The issues of access to EU markets and the need for skilled workers are still paramount, and Brussels will be keen to get negotiations underway soon."

Full article on BBC



© BBC - British Broadcasting Corporation


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