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Is the General Election Good or Bad for Business?

Last updated February 23, 2015

….or just a business distraction?

This year, one thing is certain in politics, we’re going to have a general election. And it’s going to be pretty disruptive between now and then.

Even when voting is over the uncertainty will continue for a while – a coalition is expected.

There is good and bad news.

Good news first. UK SME’s have undeniably helped our economic recovery, driven growth, employment and helped money move around the economy, might they get a reward?

Julian Smith, writing in Talk Business said “The pro-small business stance is already a cross party theme and as the election approaches I expect all parties to burnish their entrepreneurial credentials.”

And I agree with Julian. The support given to SME’s has been patchy, but that support has, for the most part, worked well. So I believe that governments’ role in future business support will remain. I’m also sure that whoever forms the next government will also continue tinkering with the support too. Watch this space.

Now the not so good news.

Many customers will be distracted by the election – not because it will be riveting viewing but because of uncertainty about life post 7th May. I expect the biggest impacts to be

  • delayed decision making
  • postponed or cancelled purchases
  • a dip in consumer confidence
  • a rush to procure certain services which may be under threat
  • possible shifts in currency markets

And all of that against a back drop of almost zero inflation.

With all the spin, the pollster reports, electioneering, debating and mud slinging you really do need to be paying extra attention to changes in your business performance.

shirley-mansfield-CoachSME
Shirley Mansfield
Master Business Problem Solver

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