With the Conservative and Liberal Democrats locked in negotiations for a possible coalition government, business groups have called for a swift and decisive resolution to the UK’s political uncertainty, after last week’s election resulted in a hung parliament.

Dr Adam Marshall, Director of Policy at the British Chambers of Commerce (BCC), said: “Companies across the UK have expressed significant concerns about how a hung parliament could affect the decisive action needed to cut the deficit and improve the business environment. The business community … expects the parties to put political horse-trading to one side 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.

“This week’s lesson from the eurozone is that we must avoid a crisis of confidence at all costs. British business wants to see a speedy resolution to political negotiations, the formation of a Government, and an agreed policy of putting the economy first.”

Richard Lambert, CBI Director-General, echoed these sentiments, saying:

“Business needs stability and wants to see a clear decision reached swiftly, which delivers a stable new Government. The UK’s route to economic recovery needs to be firmly established. The markets have been expecting this outcome, but uncertainty brings risks. The next few days will be critical.”