🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Shares

UK's tawdry pre-vote politics unsettling investors, says business group

Published 29/12/2014, 10:50
© Reuters. Britain's Prime Minister David Cameron and Ed Miliband, deputy Prime Minister Nick Clegg and the leader of the opposition Labour Party arrive during the State Opening of Parliament at the Palace of Westminster in London

LONDON (Reuters) - Britain's parties should step away from "tawdry political tactics" that are unsettling investors before a 2015 election and focus instead on spelling out long-terms plans for the economy, a business lobby group said on Monday.

The outcome of May's vote is uncertain with the centre-left opposition Labour party holding only a slim lead over Prime Minister David Cameron's Conservatives. The rising popularity of nationalist and single-issue parties is also likely to complicate the result.

Cameron has promised a referendum on whether Britain should stay in the European Union if he wins, worrying some businesses. Some also fear a Labour victory could bring in a new era of tighter regulation.

Against that backdrop, the British Chambers of Commerce (BCC) said the election was causing huge nervousness among businesses.

"For many businesses, both small and large, one of the greatest sources of challenge and uncertainty in 2015 isn't the state of global markets, but home-grown politics," BCC Director General John Longworth said in an open letter to leaders of 12 political parties.

Longworth said political parties needed to set out long term policies on public spending, taxation and education to give firms the confidence to invest, hire new workers and take risks in export markets.

The Conservatives have raised the possibility that Britain could withdraw from the EU by promising to hold a membership referendum by 2017, in a bid to stop voters defecting to the anti-EU UK Independence Party (UKIP).

Labour have appealed to voters who have seen their living standards squeezed by stagnant wages and rising prices by calling for tighter regulation in industries ranging from banking to energy.

© Reuters. Britain's Prime Minister David Cameron and Ed Miliband, deputy Prime Minister Nick Clegg and the leader of the opposition Labour Party arrive during the State Opening of Parliament at the Palace of Westminster in London

The BCC represents businesses employing more than 5 million people across the country.

(Reporting by William James; Editing by Andrew Heavens)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.