Panicked business chiefs warn politicians to 'form stable government' as confidence in economy plummets after shock election result

The pound plunged after the UK's shock general election result
REUTERS
Eleanor Rose12 June 2017
WEST END FINAL

Get our award-winning daily news email featuring exclusive stories, opinion and expert analysis

I would like to be emailed about offers, event and updates from Evening Standard. Read our privacy notice.

Business chiefs have urged politicians to calm markets and protect the economy in the wake of a shock general election result.

Experts have called on MPs to "get their house in order" and form a functioning government after Theresa May was forced to call on the DUP to remain in power following a hugely disappointing night for her party.

Dr Adam Marshall, director-general of the British Chambers of Commerce, said the result came as business was already feeling pressure.

"The electorate's split decision generates further uncertainty for business communities, who are already grappling with currency fluctuations, rising costs, and the potential impacts of Brexit,” he warned.

Firms had done their best to screen out political “noise”, he said, but the formation of a "workable administration ... must be the immediate priority”.

Stephen Martin, director-general of the Institute of Directors, said businesses had been thrown into "political limbo", with crucial Brexit negotiations due to begin in days and firms already facing "significant domestic challenges".

"The pound has predictably fallen on the news of a hung parliament, but the majority of British business will be waiting to see whether a stable government can be formed in short order,” he said.

He warned that the Tories no longer had a pass on its election pledges, such as the hard Brexit Mrs May had planned.

"If the Conservatives govern as a minority, they must recognise that they have not earned a mandate to implement their manifesto in full," he said.

Carolyn Fairbairn of the Confederation of British Industry
PA

Meanwhile Carolyn Fairbairn, director-general of the Confederation of British Industry, called on politicians to “act responsibly”.

Concerns have mounted about the business impact of political uncertainty as the pound plummeted following Thursday's vote.

The IoD said a snap poll of its 700 members showed confidence had plunged in the wake of the election, with 65 per cent believing that uncertainty over the make-up of the Government is "a significant concern" for the UK economy.

Create a FREE account to continue reading

eros

Registration is a free and easy way to support our journalism.

Join our community where you can: comment on stories; sign up to newsletters; enter competitions and access content on our app.

Your email address

Must be at least 6 characters, include an upper and lower case character and a number

You must be at least 18 years old to create an account

* Required fields

Already have an account? SIGN IN

By clicking Create Account you confirm that your data has been entered correctly and you have read and agree to our Terms of use , Cookie policy and Privacy policy .

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged in