West of England business organisations have welcomed the decisive General Election result and urged the new Conservative Government to continue to build on the foundations of growth that have emerged over the past year.
However, there was an immediate warning over the threat of the UK leaving the European Union after the EU referendum. 
As business groups across the region digested the unexpected result, the main response was one of relief that the economy would not be plunged into a period of instability as party leaders tried to form a coalition or multi-party agreement.
But the return of ministers to office who had so strongly advocated a ‘northern powerhouse’ could also mean the West of England has to redouble its efforts to make its voice heard at Westminster.
Business West, the organisation behind the Swindon & Wiltshire Initiative, welcomed the swift formation of a stable government to provide much-needed clarity and direction for the UK.
It said businesses in the region had feared the prospect of a hung parliament and unstable coalitions, with the uncertainty this would have brought for business confidence, investment and economic growth.
A majority government meant valuable space to consider the long-term economic needs of the UK and an ability to make the changes needed to make sure the economy continued to grow and thrive in an ever more competitive global economy.
However it said the election result presented some reasons for future uncertainty, with the prospect of further calls for Scottish Independence and a referendum on the UK’s place in the European Union.
Business West managing director Phil Smith said: “A majority government means that businesses can continue with their investment and growth plans. It is now up to the Government to continue to make the changes necessary to support economic growth.
“Our continued economic recovery requires a programme from government that favours enterprise, wealth creation and growth. The Conservatives must use their clear mandate to take the important decisions to help British businesses invest and grow. In return, business stands ready to work with the new government to deliver prosperity, jobs and sustained economic growth.”
Phil Brownsord, South West region director at EEF, the manufacturers’ organisation, said: “During the campaign we called on party leaders to build on the foundations of growth, with continuity and stability in business policy. That is now what we expect the newly-elected Government to deliver. There is a real opportunity to properly rebalance the economy and ensure a strong focus across government on investing in and building on our industrial strength as a manufacturing nation.
“The biggest threat to our long-term economic well-being, however, remains the prospect of leaving the EU. Mr Cameron will be under pressure to call a referendum as soon as possible, possibly bringing it to next year. The new administration must move quickly and campaign on the back of a strong and positive case for Britain’s continued membership. Any drift or dithering will mean uncertainty for British businesses, which would be very unhelpful for the long-term prospects of the economy.”
CBI director-general John Cridland also highlighted the EU referendum. He added: “Businesses will be relieved that the clouds of uncertainty around the possibility of a hung parliament have dispersed. There will be hurdles to overcome for the new Government though with a slim majority, but it must not duck the tough decisions needed to keep growth striding ahead.
“The Prime Minister must create a pro-enterprise environment, by getting the deficit down, continuing to make the UK one of the most competitive tax environments in the G20, especially for medium-sized businesses, and backing the decision of the Airports Commission.
“With an EU referendum now likely, business will now want to see an ambitious, achievable reform agenda that will make both the UK and Europe more competitive and prosperous for all. The majority of businesses want to stay in a reformed European Union which opens up the world’s largest market of 500m consumers.”
Business groups also the appointment of former Culture Secretary Sajid Javid as Business Secretary.
The CBI’s John Cridland added: “We congratulate Sajid on his appointment as Business Secretary. He was an excellent treasury minister and will be a strong voice for the business community, helping to make its voice heard loud and clear at the Cabinet table.
“We want to encourage more companies, especially Britain’s forgotten army of medium-sized businesses, to boost exports and investment, to drive growth and create jobs up and down the country. We look forward to working with Sajid to achieve this.”
The EEF’s Phil Brownsord said Mr Javid needed to focus on three priority areas – building on the success of the previous administration’s work on industrial strategy and ensuring this was applied across Government; maintaining funding for important levers of growth, including research and innovation and support for exporters, through UKTI; and helping ensure Government delivers the big ticket infrastructure projects, from additional runway capacity to rail and road improvements.
He added: “The new Secretary of State will also play an important role in any EU negotiations and in the forthcoming referendum and I am sure he understands that the vast majority of businesses he will now be representing in Government want Britain to remain at the heart of a reformed Europe.”
Meanwhile, the British Chambers of Commerce has written to the PM urging him to take bold action to secure the UK’s economic future.
