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LONDON – Business groups are calling for stability and a swift resolution to the political uncertainty in Britain, as the country wakes up to a hung parliament.
Theresa May’s decision to call a snap election has backfired spectacularly, with the Tory Party set to lose her majority in the House of Commons.
The pound collapsed as much as 2% against the dollar on Thursday night when the first exit polls suggested a hung parliament and it continues to fall on Friday morning. UBS is also warning that the result could damage the UK economy by putting off overseas investors.
Reacting to the election results, business groups are calling for politicians to “get their house in order” and quickly form a government to ensure stability for the economy.
Carolyn Fairbairn, Director-General of the Confederation of British Industry (CBI), which represents 190,000 UK businesses, says in a statement: “This is a serious moment for the UK economy. 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.”
Mike Cherry, the chairman of the Federation of Small Businesses (FSB), says in a statement: “In the coming hours and days, business needs immediate reassurance from the government that emerges about how it will protect the economy from any political turmoil. The UK must be seen to remain open for business, with a government committed to supporting enterprise.
“In the days ahead, FSB members will want to see ministers appointed and a clear timetable for the coming weeks. We are ready to work with the Government and all parties on what measures to bring forward.”