General Election 2017: North West business community reacts to surprise result

The British electorate woke on Friday (June 9) to news of surprisingly high Labour gains and a somewhat wobbly Conservative foothold in the snap General Election, following several weeks of fearsome campaigning from all sides of the political spectrum.

As the fallout of the vote unfolds and the final result becomes clearer, we’ll bring you views and reaction from across the North West business community.

Tim Potter, chief executive of HURST

“This clearly wasn’t the outcome anyone was expecting, least of all the business community, but we have to respect the result of the democratic process.

“There will inevitably be a period of further uncertainty following this shock election result.

“However, since the Brexit decision our clients have proved themselves to be resilient and we have every reason to believe they will continue to do so.”

Karen Campbell-Williams, head of the property and construction team at Grant Thornton (North West)

“It’s to fair to say that an inconclusive result is not what the business community wanted but the country has spoken. Our political leaders now have a lot of talking to do and we hope there is enough common ground to produce a functioning administration.

“Strong government does not need to be defined purely in terms of the size of the majority. It’s also about the quality of leadership, ideas and ability to address opportunities and challenges. This country has been successfully governed by coalitions in the past and we believe that creating and sustaining a vibrant economy starts with making the most of long-standing strengths – around innovation-based businesses, creative industries and advanced manufacturing.

“The entrepreneurs and large corporates that we advise will still want Brexit given full attention because it’s an increasingly significant dynamic in the economy. Businesses are already taking action – we are working on deals now which involve North West companies buying within the EU and/or setting up operations there. We all know that Brexit is bringing additional challenges such as market access, customs and labour market impact - and UK Plc has got a lot of work to do to figure the next steps.”

Chris Oglesby, CEO of Bruntwood Group

“The priority is to ensure that we get a stable government in place as quickly as possible. As a business rooted in our cities we believe that the success of our great metropolitan centres is fundamental to the well-being of the country as a whole. We will work with the Government along with civic and business leaders locally to achieve this.

“Obviously there’s a lot of talking to be done now in Westminster but one conclusion we can probably draw is that a hard Brexit is now less likely.

“Of the campaign itself the parties will be taking stock, not least because it’s possible there could be another election this year. It seems there has been a surge of young people voting which is very welcome – engagement is one of the foundations of a successful democracy, and idealism will always be a driver of change.

“From our perspective we have all known for years that the UK economy needs rebalancing. Bruntwood remains deeply committed to the Northern Powerhouse agenda. We want to see hard investment in infrastructure to improve East-West connectivity and steps taken to address fundamental issues, such as improving productivity and closing skills gaps. Better transport links and higher levels of investment in technology can be part of the solution. We hope these issues are addressed in core policies.

“We have about 50k people doing business in our workspaces across the North of England and Midlands. We know well the contribution they make to UK Plc. Our regions have so much to offer and can help drive the country forward during the once-in-a-generation change we are going to experience now that Article 50 has been triggered. But it’s not just about Brexit. We want to see a focus on better health outcomes, more life chances and creating smarter towns and cities – and perhaps the turn out yesterday shows that the electorate wants these issues on the table too.”

Mick Ord, founder of Mick Ord Media Consultancy

“The saying ‘expect the unexpected’ has seldom seemed as relevant in British - and Irish - politics as it is now.

“How Theresa May must regret her decision to call an election, mainly for party political reasons. A bit, many would say, like David Cameron with the Brexit referendum . She won’t admit it in public of course and I doubt in private.

“Politicians, businesses and the rest of us are in unchartered waters - nobody likes uncertainly so let’s have no more electoral surprises soon please. That may be a vain hope given the instabilities.

“I think her Brexit offer may now be softened but we’ll all have to wait and see. And they said a few years ago that politics was too boring and that young people aren’t engaged with the political process. They are now.”

John Lyon, managing director of ICS

“We have been left in no man’s land and the uncertainty is not good for the economy or for anyone. What comes next? We just don’t know. It is not a healthy position to be in.

“It feels like we are now in an economic stalemate, and it’s a reason for people to hold off making important decisions. Where does this leave the Brexit negotiations? Will it stall or will it strengthen? We just know, but it is definitely concerning.

“If we had woken up to either party winning an outright majority, we would have some certainty and could get on with it. However, now we don’t know what is going to happen next – will there be another election? Will May resign? Will there be a coalition? Everything is unknown at the moment.

“Contractors and freelancers, like the rest of the population, will have to wait and see how they will be affected – it is a waiting game now.”

Steph Salusbury, channel manager for insurance and energy, Businesscomparison.com

“The uncertainty that comes from having a hung parliament is negative for small and medium sized businesses in the North West, especially with Brexit negotiations just around the corner.

“Theresa May called this election so she had a strong mandate to start the negotiations that are so crucial to our business community and economy but this is far from the reality people are waking up to today. Aside from Brexit, the three main political parties made important manifesto pledges to UK businesses and solid ground must be laid for them to see these promises through.

“There are large-scale commitments concerning employment law, taxation, funding and investment and changes that could benefit North West businesses in the short term. For example, both Labour and the Conservatives pledged to cap prices on business energy bills – this must be actioned sooner rather than later for SMEs who are struggling with rising business costs.”

Mike Mesrie, director at MDM Resourcing

“Amid fresh uncertainty, a period of calm is required while the smoke clears and business leaders familiarise themselves with emerging new realities.

“The situation has parallels with the post-referendum period a year ago when businesses felt anxious and disoriented about economic prospects in an unexpected Brexit environment.

“However, after a period of assessment, businesses quickly came to terms with the new uncertainties, kept calm and got on with building their businesses and serving their customers. We expect the same outcome following the shock general election result.”

Matt Wilson, owner of Telecoms Cloud Limited

“Either May was going to be seen as a clever strategic player who topped up her seats with the many more she needed or be seen as a very stupid gamble that was not worth the risk…after today’s result, it look like the latter.

“Evidently Labour has done very well from Merseyside and I just hope they follow through with their promises and listen to the needs of SMEs, especially around digital infrastructure and the lack of skills within our region.

“May’s own goal will only cause more uneasiness for business leaders as we wait for a strong and stable government to take power..whoever finally wins!”

David Lathwood, lead director at JLL North West

“Despite being in a prolonged period of political uncertainty, and notwithstanding the dramas that immediately followed the Brexit vote, the North West property market has remained very resilient. Investors in real estate look over the medium to long term and Manchester has continued to attract a high level of interest from international investors.

“The UK is also rated by JLL as the most transparent real estate market in the world. This is a result of liquidity, the history of political stability over the long term and respect for the law, as well as factors such as the strong economic fundamentals, long lease terms and the comprehensive professional and legal framework.

“The election result suggests that the hard Brexit that many were assuming would now definitely occur looks somewhat less likely. That could be a longer term positive for the UK market.

“Sectors with long-term structural support, such as Logistics and Alternatives, will remain strong. If the pound remains weak, Retail and Hotels will benefit – alongside UK manufacturing. But as before, JLL continues to believe the UK offers significant opportunities for medium and long term investors.”

Sara Lawton, director at Construction Impact Framework

“So in my previous prediction I eluded to the fact the young and the hopeful who want a brighter future could swing the General Election and that is what we have seen across the Nation. Jeremy Corbyn has done an exceptional job but most importantly he has engaged the entire nation in politics! We are now looking at yet another coalition…

“I think this country needs a Majority Party to provide stability and security. The Conservatives need to re-assess their policies and listen to the people and the in particular the young people who have every right to demand a brighter future. This General Election has exposed the fact the Conservative Party are in power by default only and the people have not voted them into rule – the ‘people’ of this Country have spoken and it is a voice against further austerity , scathing cuts to the public sector and our shameful involvement in the sales of weapons.”

Chris Cheap, regional senior director at GVA (Manchester)

“Whilst today’s result may not be the outcome the markets had expected, we urge both parties to act as a unified front to secure the best deal for the UK in exiting the EU and provide much needed stability and clarity for the markets and confidence for UK and overseas investors.”

Bob Ward, North West senior partner at EY

“In the face of political uncertainty, and with further political turbulence most likely, UK companies and its leaders will have to work out how we can continue with the job of doing business against a challenging backdrop.

“I have no doubt that the UK has enough business leadership to stand-up and lean-in during this critical time. It is important for the UK’s continued economic success and growth that UK businesses keep focussed and the wheels turning. In particular, as the impact of devolution starts to take effect, it is vitally important that the public and private sector work together across the north to deliver future investment and growth.

“We will all need to demonstrate through our actions and our words that the UK is open for business and remains a competitive place to live and work. We are here to support Government and even more importantly create employment and prosperity for the long term.”

Henry Brooks, founder of TEM Property Group and executive director of the Tatton Estate

“It is disappointing that the General Election has created more uncertainty now with a hung Parliament at a crucial time in this country’s history.

“The coming days and weeks are very important if we are to restore confidence and stability. This election result has thrown in doubt many key issues, not least the UK’s ability to negotiate successfully with the EU on Brexit which has already caused so much uncertainty.

“However it is an opportunity to gain cross party consensus on Brexit and other major policies about the UK’s future. Here in the north there is a real need to push on the Industrial Strategy designed to help restructure our policy framework and our economy to allow Britain to grow in the 21st Century. All parties already recognise the dire need to tackle the housing crisis, an issue that has had a significant impact on the election result, and strong ministerial leadership, backed unstintingly by number 10 and 11, is essential.

“To fund our deficit, social care and social costs much greater, real economic growth is absolutely essential. The science, construction, agri-horticultural and hospitality sectors where we alone are looking to create several thousand new jobs have huge potential to increase UK prosperity, but need a carefully thought through skills and labour policy. The election result does provide the opportunity to reflect on this and deliver a more nuanced and joined-up approach.

“The last government did a great job in launching the Northern Powerhouse with much cross-party collaboration. More of this along with detail and delivery is crucial - this is a long term project not a short term initiative. The priorities remain the same, namely infrastructure, skills, business rates, attracting investment and hopefully any Northern Powerhouse ministerial appointment, which is regarded at the moment as a junior cabinet role, will be given even more status to elevate the role. We need greater vision and ambition than ever as the prize for future generations is so great.”

Murray Patt, founder of Alexander Knight & Co

“Business owners wanted stability, certainty and confidence going into the Brexit negotiations and that has clearly not happened here. The more cautious business owners will be delaying decisions, deals and expansion plans until the path of the Government becomes clear.

“It’s important that the voice of business is heard during the Brexit process and the results of this election mean that entrepreneurs will have to keep a closer eye on proceedings during the next two years than they had originally planned.”

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