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Recovery concerns could affect contractor accountants

Recovery concerns could affect contractor accountants

A hung parliament could lead to millions of jobs being lost according to veteran MP, Ken Clarke.

He told the Sun newspaper recently that a hung parliament would be very dangerous and the resulting loss of economic confidence could see vast numbers of jobs and homes lost.

He said that if there is no clear winner of Thursday’s election, businesses and homeowners may struggle to meet their financial obligations due to high interest rates.

However, this view is not shared by everybody. The PCG and several leading contractor accountants think that a hung parliament would bring about an opportunity for a ‘refreshing’ political change.

Many small businesses who are still struggling to recover from the recession will no doubt be hoping for change. Recent figures showed that 58% have yet to post profits. According to Nick Hood from Begbies Traynor, business failures reach a peak about one year after a country emerges from a recession.

In addition to the doubts surrounding the future political landscape, people looking for a new job may not be too pleased to learn that businesses are cutting the salaries on offer for new jobs. Reed conducted a survey that found that average salaries have dropped by 4% from February to April.

Reed’s MD, Martin Warnes, said that employer demand remained constant last month, but salaries were dropping, and this trend occurred even in sectors such as financial services and hospitality where the demand was high.

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Image: 38 : Oh No!!! by Amy Mud Pie

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