Business leaders welcome coalition

BUSINESS leaders today welcomed the emergence of the new coalition government to fill the "power vacuum" created by the indecisive election result.

Miles Templeman, director general of the Institute of Directors, said: "The key test facing the coalition is whether it can maintain a stable government over a significant period of time that delivers large cuts to public spending, and whether it can generate policies across all areas that genuinely supports business and economic growth.

"Each party has favoured or protected areas of public spending that are uniquely their own. Unless both show a willingness to make some sacrifices, there is a danger that tax hikes become the main tool to fix the public finances.

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"No one should be in doubt that tackling the deficit primarily through tax increases would jeopardise the private sector and the country's ability to pay for first-class public services in the future.

"Government needs to be much smaller so there is more space for businesses to grow. Unless we shrink the state through much lower public spending, the state will shrink the economy."

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