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Last week the results were in for the UK and David Cameron secured the next five years for the Conservatives winning an overall majority.

In the run up to the election the Prime Minister was backed by 5,000 small and medium sized businesses urging voters to let the Tories "finish what they started."

So what did David Cameron achieve for business between 2010 and 2015?

If we look passed the results of the first two years of austerity (which saw the UK's growth plummet and spending fall by 3%), Britain's economy has started to look healthy once more. It is no doubt that due to this economic recovery the UK is in a better place than in 2010. It therefore looks like Cameron is on steady ground to continue improving UK businesses.

It's important to note that throughout their campaigning, the Conservatives set out a clear economic plan. With a majority win Tories now have the opportunity to execute this without having to navigate other party's red lines. There are some key areas which could change for SMEs in the next five years.

Tax

A pledge made on 29 April, Tories said that they would not raise income tax, VAT, or National Insurance. This means the government will find it difficult to raise further revenue through tax increases. However, Chancellor George Osborne pledged a "radical" review of the business rates system in his March Budget, but the terms of the review are yet to be set.*

Europe

Cameron has pledged an in-out referendum for the UK's membership of the EU. The promise has been met with resistance from many business leaders. In April a German study suggested that a so-called 'Brexit' could cost the UK 14% of its GDP by 2030.* Whatever the figures, it will no doubt cause uncertainty in business, both at home and overseas.

Red tape

The Conservatives have long pledged to act on so-called 'red tape', and in their manifesto promised to cut £10 billion worth of it in this Parliament.* Cameron's prioritise are freeing business from red tape and "excessive interference" from Brussels and providing access to new markets through "turbo charging" free trade deals with America and Asia.

* http://www.simplybusiness.co.uk/knowledge/articles/2015/05/election-results-small-business

 

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