Post-election stability: What does it mean for UK businesses?
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For SMEs, General Elections usually bring with them an aura of uncertainly as many business owners delay decisions until they are sure of what will happen next.
However, now the results are in and the post-election ‘hype’ is beginning to pacify, we can start to ask: What does this signal for UK M&A?
As a result of the General Election returning the first Conservative majority government since 1992, we fully anticipate this to have a positive effect on M&A activity as confidence is instilled as a result of a stable economic environment.
Following the result, Chancellor George Osborne announced a second budget of the year will take place on 8th July, claiming he does not want to wait to turn the promises made by the conservatives in the election into a reality.
During the announcement, Osborne said he would provide details of how the government plans to eliminate the UK’s budget deficit and run a surplus by the end of the parliament, as well as create a further three million apprenticeships.
The Chancellor also claims that the UK could replace Germany as the largest economy in Europe by 2030, which would involve the UK’s employment rate of 72% overtaking Germany’s 74%.
It will certainly be interesting to see how the budget, which will feature a “laser-like focus on making our economy more productive”, will affect UK businesses as a whole and whether an already active market is further boosted if and when the Chancellor’s promises are realised.