Election 2019: Business community anticipates hung parliament
In the first poll of UK business owners since the 2019 general election was announced, business finance company MarketInvoice sought their views on voting intentions, expectations and challenges ahead.
The election
The MarketInvoice Business Insights survey found that most business owners (42%) are nervous about the general election, as two-thirds (67%) anticipate a hung parliament. This was supported by their voting intentions with a quarter (25%) favouring the Conservatives, closely followed by Labour (22%) and the Liberal Democrats (19%). Interestingly, the Brexit Party was the favourite for 1 in 8 business owners (12%). The chief reason guiding their voting decisions was the stability of the economy as well as promoting the investment and business environment.
Brexit
Despite the consternation about a hung parliament, more than two-thirds (68%) were confident a coalition government could conclude Brexit with a deal by 31st January 2020. Less than a quarter (23%) feared more uncertainty about Brexit in the event of a hung parliament.
Business climate in 2020
Almost half (46%) of business owners are expecting a slow start to the new year. Worryingly, 50% expect a decrease in revenue in the first 6 months of 2020. Moreover, the majority (53%) feel finance options (overdrafts, business loans and credit cards) will become more scarce and that credit terms will tighten. Corporation Tax and Business Rates were cited as they two main items that business owners would like the new government to review in improving the business climate.
Doing business in the UK
Over half (56%) of the business owners surveyed reported that current political instability is negatively impacting the UK’s reputation as a place to do business in and with; citing an impact on inward investment and attracting the best people to work here. This said, two-thirds (67%) said they would still set up in the UK if they were to restart their business today.
Bilal Mahmood, external relations director, at MarketInvoice, commented: “It seems like business owners are as spilt as the general public over the outcome of the forthcoming general election. It’s safe to say largest party will be Labour the Conservatives but it’s clear that neither will win an overall majority.”
“Immediately, two things that businesses need to consider are longer leads times on sales and potentially waiting longer to get paid. Both will impact their cashflow. Careful planning to manage and secure funding will be important factors in navigating the time ahead”.
“Business owners should be seeking advice from their accountants, finance providers and bank managers to ensure they are best prepared for all scenarios. Meanwhile, it will be essential for the new government to reassure and encourage these businesses who are the heartland of the UK economy, that the economic environment will be one they will prosper in”.
