Business leaders urge swift end to post-election vacuum

Business groups have called for a swift resolution of the political uncertainty surrounding the composition of the next government.

With the BBC reporting that Conservative leader David Cameron has made an offer to the LIberal Democrats to form a government, both the CBI and the Institute of Directors have warned that business needs fast action to establish a stable government.

Commenting on the hung parliament, Richard Lambert, CBI director-general, said: "Business needs stability and wants to see a clear decision reached swiftly, which delivers a stable new Government. The UK's route to economic recovery needs to be firmly established.

"The markets have been expecting this outcome, but uncertainty brings risks. The next few days will be critical."

Miles Templeman, director-general of the Institute of Directors, said: “It’s vital that this political vacuum is filled as quickly as possible. The country simply can’t afford an extended period of political horse trading which delays much needed action to tackle the deficit. Politicians have postponed the difficult decisions on public spending cuts for too long already. Further delay will only jeopardise the future of the UK economy.”