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The Impact of the General Election on Small Businesses: What to Expect and How to Prepare

impact of the general election on small business

Anticipated News: General Election Called for July 7th

After much anticipation, Rishi Sunak has officially announced a general election for July 7th.

Contrary to the popular belief that "things can only get better," it seems the outlook is grim for the Tories. Inflation did not fall as much as anticipated, failing to decrease at the expected rate, which will likely force interest rates to remain stagnant for a few more months to come.

This scenario will leed to a staggering £10 billion deficit for the government as it now faces higher interest payments. Hopes for the long-awaited tax cuts in the autumn statement have been dashed, and with no viable solution on the horizon, optimism has faded.

What Does This Mean for Businesses Across the UK?

Let's delve into what this means for businesses like yours, and mine. A general election, though necessary, could create a whirlwind of distractions for the nation. Distractions often lead to a dip in consumer spending, so businesses should brace for a potential temporary drop in sales.

A Silver Lining?

However, it's not all doom and gloom. There are "strong" indications that Labour is anticipated to win the upcoming election. What does this mean? It could signal a renewed sense of optimism and a surge in public sentiment. The uncertainty that has been looming like a dark cloud may finally dissipate, bringing much-needed clarity for businesses.

This renewed clarity could be the fuel needed for investment and spending. Big businesses and consumers thrive on certainty and will likely respond by loosening their purse strings, recruiting, investing, and making bold plans.

Hope for Small Businesses

Small businesses, rejoice! This could be the turning point you've been waiting for. Even if economic numbers don't improve immediately, positive sentiment can often be enough to kickstart a flatlining economy.

In the meantime, let's hope for a decisive outcome and avoid the complications of a hung parliament.



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