Election 2010 – What happens now?

May 7, 2010

“The best of a difficult situation for the country is the apparent alliance being formed between the Conservatives and the Lib Dems rather than a Labour/Lib Dems alliance.
However, I am fearful that the uncertainty in the capital and financial markets, together with a cautious anticipation of what the Conservatives will have to sacrifice to the policies of the Lib Dems will have a dire effect on the mentality of operators who are already cautious about expansion and banks who are extremely reserved about lending. I hope that Lib Dems’ policy of a “mansion tax” of 1% over £2M of value is not part of the coalition equation. This would undoubtedly have a depressing effect upon the attitude of decision makers and will lead to the reduction of housing values which in turn would be linked to the security of many loans from commercial banks. This again will have an effect upon funding in the sector.
The sooner we have a general election to establish a clear leader the better for this country and certainly our sector.”

David Coffer, Chairman, The Coffer Group

A hung parliament will mean uncertainty over a much longer period of time. Only a solid coalition between the conservatives and lib dems could give the markets the much needed stability we require. The commitment would have to be long term.
Any other coalition is likely to break down.

Mark Sheehan, Managing Director, Coffer Corporate Leisure