Now that the final seat has been counted, Thursday’s general election has officially resulted in a hung parliament.
But while the main political parties start negotiations about a possible coalition, small businesses, recruiters and umbrella companies will want a swift resolution to what many are describing as a precarious state of affairs, both politically and, more importantly, economically.
The stock markets have already taken a battering over the last 48 hours and several leading economists have suggested than anything other than a Tory / Lib Dem coalition could have a devastating impact on the UK economy.
According to the Forum of Private Businesses (FPB), MPs should now put aside their political differences and focus on establishing a credible government over the coming days. A spokesperson from the FPB said that although the hung parliament would leave many SMEs extremely disappointed, it is vital that MPs re-align their focus on the salient issues that are affecting this country.
It is still not known if the proposed hike in National Insurance Contributions would take effect under a Tory / Lib Dem government. What is clear is that the next 6-12 months will be pretty painful for most limited company contractors, recruiters and umbrella companies. Public sector cuts are now inevitable and this will surely result in job losses for contractors and permanent employees alike.
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Image: Worried by Roberto Bouza
