Business grandees are becoming increasingly concerned that the uncertainties created by June’s snap general election will hit growth.
More than 80% of FTSE 100 chairman believe political instability will prove “negative” or “very negative” for their businesses, according to a survey by headhunter Korn Ferry.
The inconclusive election result, which has left Theresa May relying on Ulster’s Democratic Unionist Party for a parliamentary majority, risks damaging consumer confidence and business investment, according to a number of board chiefs cited in the survey.
More than half of FTSE chairmen warned that Britain was likely to get a worse Brexit deal than it could have expected before the election.
“The result has helped to limit the influence of the ‘no deal is better than a bad deal’ Brexiteers, but this is offset by the EU now having more of the upper hand in negotiations against a weaker UK government,” said one respondent. “All the power in the negotiations lies with Europe,” warned another.
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On Britain’s prospects between now and Brexit, 63% of chairman polled expected the economy to expand “slightly”, with 23% hoping for “strong” growth.
Just 7% have predicted that the country will fall into its first recession since the financial crisis.