19/08/2019 - Bruton
Will a potential caretaker government prolong Brexit negotiations? As Labour continue their rhetoric of delivering a vote of no confidence in the government once parliament reconvenes in September, further speculation mounts over the future of Boris Johnson’s government. It is known that rebel Tory MPs have met with the Opposition about the prospect of a ‘caretaker’ government, seemingly undermining the strength of the government’s position within the Commons.
Speculative imaginations of how a new government would manifest, have produced several incarnations that have whetted the appetites of many a politico in Westminster. The Telegraph this morning have reported that alongside the possibility of a Jeremy Corbyn-led government, veteran MPs Ken Clarke and Harriet Harman respectively would be prepared to lead a nightwatchman government. but whilst in the eyes of MPs this may provide more security to Britain, would this prolonging of political chaos be more harmful to small and medium sized businesses in Britain?
In the second quarter of 2019, the output of the British economy shrunk by 0.2%; marking the first negative growth in the UK economy since the final quarter in 2012. With some commentators blaming the UK’s impending exit from the European Union as the reason for the shrink, others claiming political indecision making the UK too volatile a place to invest, Jenny Tooth OBE – CEO of the UK Business Angels Association – has commented what further potential chaos could mean for SMEs in the UK.
“Brexit has left many businesses that are backed by Angels, uncertain of their future in terms of access to markets and talent. Whilst for entrepreneurs in the regions, it will be vital to ensure that they can continue to secure the investment need in view of the loss of European Investment Bank Funds and European Regional Development Funds. A no-deal Brexit will affect the regions hardest and especially those businesses which rely on importing or exporting from the EU, and the talent influx of EU members.
I hope that whatever government Britain has in the next month will make it clear that they will make it their business to support SMEs, entrepreneurs and investors, as well as recognising the importance of angel investing and the tax efficiencies available to encourage this. Angels do an incredible amount of work to support some of the best and brightest British entrepreneurs in their venture and they will need to be certain that the British government – whatever form it may take – is good for business and investors. What is absolutely clear is that definitive resolutions are needed. Further political chaos, and the implications of which, has made Britain a volatile place in the eyes of investors. Investors need a clear message so that they know the direction in which Britain is moving in.”
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