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General election is 2015 business concern

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5th Jan 2015
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Key areas of concern for business in 2015 includes the upcoming general election and uncertainty about the UK's role within the EU, according to two surveys.

The ICAEW surveyed 500 of its members in business, and separately the Deloitte published the findings of its latest CFO survey.

Interestingly, both showed similar results.

ICAEW's survey reported that businesses were concerned about the uncertainty surrounding the UK's part in the EU and a potential referendum. Half of those surveyed said the uncertainty would have a negative impact on business. 

In addition, 40% said the upcoming general election and potential shift in political governance could "adversely impact their firm", but many more (47%) said it would have little to none.

Other challenges to business in 2015 include cuts to public spending and instability overseas, for example in the Middle East and Ukraine.

In addition, key findings from Deloitte's survey of 119 CFOs reports that domestic politics and economic risks are key concerns for CFOs in 2015.

Topping the list as biggest challenges to business this year, are the UK general election, the external markets and Euro area weakness and the UK referendum on EU membership.

Concerns about policy change following the general election have risen 'significantly', but CFOs remain upbeat about the UK's economic fundamentals.

But CFOs see no more level of uncertainty this year than they did last year. Around 56% say in addition that it's a good time to take risk into their balance sheet. CFO optimism has declined to its lowest point in two years however but there are still more optimists than pessimists. 

In addition, CFOs expect the recovery in consumer spending power to gather pace in 2015. On average they expect employee earnings in their businesses to rise by 2.9% in 2015, forecast is expected to rise 1.3%

The majority expect consumer price inflation to hover around the Bank of England's 2% target in two years’ time and a fifth now expect inflation to stay below 1.5%.

What are the biggest challenges to business for you in 2015? Will the general election, or EU UK uncertainty impact your firm or your client's business?

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