The New Coalition Government

Reporter: East Lancs Chamber of Commerce
Date online: 12 May 2010

Message From The CEO

At the time of writing we have a new Government, and indeed what is effectively a new form of Government - Coalition - in place. The business community wants, nay, needs, stability in the political as well as economic environment if it is to thrive, compete and provide employment. The next couple of months should tell us whether we now have that stability.

While all of this has being going on at home, the European Union and International Monetary Fund have just put in place a 750 billion loan package intended to help stabilise the Greek economy and to forestall any spread to the 'PIGS'. This matters to the UK for many reasons, not least the benefit to our exporters of having a healthy consumer market in this very significant European market. While sterling has risen slightly, it remains competitive against historic levels - but we need our customers to have confidence. Whether this loan, effectively underwritten by the large northern European economies, has done the trick for the longer term remains to be seen.

For either though, the big item for industry and commerce, besides a favourable international trading environment and political and economic stability, is a better balance between the wealth generation of the private sector and the level of public expenditure and debt. As we have commented before, this is not simple to achieve in the scale required, as it has employment and social consequences. However the Chamber will continue to lobby and provide constructive advice on the prospective cuts and fiscal arrangements.

Now is a good time for the business community to make its voice heard. Do let us know if there is an issue that is of importance to you.

Mike Damms
Chief Executive