Businesses fear impact of hung parliament

COMPANIES are worried about the impact of a hung parliament on their businesses, a study has revealed.

The British Chambers of Commerce said that 65 per cent of a poll of 300 businesses were either "concerned" or "very concerned" about the prospect of a hung parliament.

It found that most businesses feared a VAT hike after the election.

Director-general of the BCC, David Frost, said: "Businesses are right to be wary about the prospect of a hung parliament. Instinctively, companies prefer a clear mandate to lead and govern.

"With our economy still fragile and the public finances in a dire state, the overwhelming concern is whether a hung parliament will provide decisive action around the UK's unsustainable deficit.

"Whatever the outcome of the election, whether we have a coalition government or not, we must see a credible plan to reduce the deficit and restore confidence within 90 days."