Reference number: PR 2010 22
FSB News Release
PR 2010 22
Issue date: Tuesday 11 May 2010
Small firms lacking confidence following the General Election
FSB snap poll shows that 54 per cent of firms will not move forward with plans to expand following election results and 49 per cent want another election in six months
The election result has left small firms lacking confidence in the economy and many will not be looking to growth, a snap poll by the Federation of Small Businesses (FSB) shows.
Following the outcome of the election last week, which showed that none of the parties had a majority to govern the country, over half (52%) of the 3,200 respondents said they lack confidence in the economy and 54 per cent said they will not move forward with plans to new staff or introduce new products and services.
Seven in 10 small firms want the incoming government – of whatever complexion – to reduce the budget deficit and 52 per cent want this done through cuts in public spending, and sooner rather than later. Another 44 per cent want to see the banking system reformed and 38 per cent want the government to steady the financial markets.
Following the onset of a hung parliament which has led to lack of confidence in the economy and the prospects for small business growth, nearly half (49%) of respondents want another election in six months.
John Walker, National Chairman, Federation of Small Businesses, 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.
"Confidence is vital for small businesses and we know that they want to take on new staff and grow their business, but are still cautious about whether the economy is strong enough to do so. The FSB is calling for a renewed economic stimulus to help small businesses continue to create jobs, get access to crucial finance, innovate and start up new businesses, to get us squarely on the road to recovery."