Economy: Stability vital for UK growth, warns CBI

CBI director-general Richard Lambert said businesses needed stability.

"The markets have been expecting this outcome, but uncertainty brings risks. The next few days will be critical," he said.

John Walker, national chairman of the Federation of Small Businesses, urged the parties to form a working coalition as quickly as possible so as not to cause uncertainty for the business community that is just beginning to recover from the downturn.

"Confidence in the economy is vital for small businesses and over the coming days the new Government must act fast and decisively to set out a plan for dealing with the deficit and returning the UK economy to growth," he said.

Gary Lumby, president of Leeds Chamber of Commerce, said companies across the UK had expressed significant concerns about how a hung parliament could affect the decisive action needed to cut the deficit and improve the business environment.

"The Chamber urges the parties to put political horse trading aside and put the UK economy at the heart of their thinking. Strong leadership and consensus are required to deal with the serious threats still facing the economy," he said.

"The events from the euro zone show that we must avoid a crisis of confidence at all costs. British business wants to see speedy resolution to political negotiations, the formation of Government, and an agreed policy of putting the economy first.

"We expect any coalition to tackle some of the key roadblocks that businesses have been saying they are facing such as red tape, Empty Property Tax and proposed increases in national insurance contributions."

Dave Prentis, general secretary of the union Unison, stressed there was no popular support for savage cuts in public spending that would have followed an outright Conservative victory.

"The City and big business, who have poured millions into the Tory coffers, have been denied the decisive result they craved.

"The priority now must be to secure the economic recovery and jobs, whilst protecting our vital public services.

"Unison will fight tooth and nail to defend our public services, oppose more privatisation and will strongly resist any attempts by any new government to attack our members' pay and pensions."