City reacts: Business ‘eager for clarity’ after Boris Johnson’s election victory
As Boris Johnson enjoys his General Election victory, business leaders have woken bleary eyed – but largely satisfied – with the news.
For many, it was a sigh of relief, after London business groups had strongly opposed Labour’s policies of renationalisation and higher taxation.
Sterling surged last night, settling around $1.347, while the FTSE 100 opened 0.8 per cent up, and the FTSE 250 soared a whopping four per cent – the most in a decade.
Read more: Boris Johnson praises ‘stonking mandate’ for Brexit
However, the overwhelming message this morning was that the support for the PM came on one condition: that he deliver on his campaign promise to “get Brexit done”.
Chris Cummings, chief executive of the Investment Association said: “Congratulations to Boris Johnson and the Conservatives. Our industry helps three-quarters of all UK households achieve their financial goals.
“The money invested in turn creates jobs and helps local communities and businesses to grow. We look forward to working with the new government to help our customers prosper and to promote the UK as the global leader for investment management.”
Breaking Brexit deadlock a ‘key priority’
Catherine McGuinness, policy chair at Canada Corporation, said: “With the clock ticking, breaking the Brexit deadlock must be a key priority for the government. But even if a withdrawal deal is passed, there is still a long road ahead.
“For the City, it is vital that the future framework agreement recognises the enormous contribution of the services sector, securing maximum market access and developing a structure for the UK economy to prosper in the years ahead.
“Services are the lifeblood of the UK economy and vital to its growth.
“Politicians across the spectrum should recognise that financial and professional services make a significant contribution, employing 2.3 million people across the country – two thirds outside of London.
Politicians ‘must rebuild confidence’
CBI director-general Carolyn Fairbairn said the most important matter for the PM was to rebuild business confidence after another year of uncertainty.
“After three years of gridlock, the Prime Minister has a clear mandate to govern. Businesses across the UK urge him to use it to rebuild confidence in our economy and break the cycle of uncertainty.
“Early reassurance on Brexit will be vital. Firms will continue to do all they can to prepare for Brexit, but will want to know they won’t face another no deal cliff-edge next year,” she said.
“Pro-enterprise policies on immigration, infrastructure, innovation and skills, will help relaunch the UK on the world stage.”
Miles Celic, chief executive of The City UK, said, “This is a clear result that should allow the country to finally turn the page on the first phase of Brexit.
“With a January Brexit now all but certain, both sides must move quickly to prepare for the next stage of the negotiations.
“The first phase has been dominated by the impact on goods. This has neglected the 80 per cent of the UK economy made up of Britain’s world leading services industries.
“Ministers should seek to rectify this, consult widely, and focus their efforts on how the UK’s global leadership in services industries like ours can be sustained and enhanced over the course of this parliament.”
Business wants ‘clear-sighted government’
Jonathan Geldart, director general of the Institute of Directors, said it was important for the new government to keep a level head amid its hopes to crack on with Brexit.
“After years of parliamentary chaos, directors want to see a Government that is clear-sighted about the challenges facing businesses, and ambitious, but realistic, in its response. British companies have been resilient amid the confusion, but they are eager for some clarity now.
British Chamber of Commerce director general Dr Adam Marshall said “firing up the economy” must now be Boris Johnson’s focus.
He said: “Campaign slogans must give way to a renewed focus on the details that matter.
Read more: Boris Johnson delivers victory speech
“Our business communities need to see swift, decisive action to avoid a messy and disorderly exit from the EU and to tackle the barriers holding back investment and growth here in the UK.”
Peter Bishop, chief executive of London Chamber of Commerce and Industry, added: “Individual political viewpoints aside, businesses will be grateful that the election has delivered a clear result