Partner Article

Entrepreneurs demand answers

AS THE finer details of a coalition between the Liberal Democrats and Conservatives emerges, many of the region’s entrepreneurs are waiting with anticipation to discover how it will affect their business.

They told bdaily of their hopes and concerns about uncertain times ahead.

Seth Ridley, partner of Newcastle web design company, Kino Creative, said a Conservative government ‘tempered’ by an alliance with the Liberal Democrats could be a plus for the region’s businesses, but warned a stable government is essential for the UK and the North East’s progress.

He said: “As long as I see some of the Conservative economic policies coming through, I think a new government between the Tories and Lib Dems could work.

“The removal of National Insurance for businesses under 10 people is a positive idea as is the freeze on VAT and automatic business rate relief.

“With a hung parliament I’d worry that none of the policies set would make it through the house, and we’d be left with a toothless government unable to get its agenda past partisan opposition parties.”

This was a view echoed by North East online marketing firm, Silverbean, who’s MD is worried that a coalition government could have a profound effect on the region’s SMEs.

Neil Robbins, said: “The concern for company like ours is the lack of potential decision making in the near future.

“We’re picking up a lot of business and we’re working with a lot of clients in the online retail sector. We’ve turned the corner as a country but this could all be for nothing if some decisive action is taken soon.”

Mr Robbins said the next 12 months is crucial for the region’s economy and if any new government is unable to stamp its authority and push through the measures to reduce the UK’s deficit, North East businesses could be in serious trouble.

Joanna Feeley, creative director of Heaton based trend forecasting agency, Trend Bible, said: “I think there is an air of tension in the business world surrounding the current political situation, as the recovery is so fragile and it’s important to have strong leadership at a time like this.

“My expectations are that VAT and income tax will go up, but my concerns are that with a coalition, the negotiations and the decision-making process will be painstaking, and already it’s evident that this is influencing the markets, which in turn is affecting our export trade. It makes it pretty hard to plan ahead as a small business owner.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .