Hung parliament spooks channel

Resellers express unease at effect outcome could have on the channel

Channel firms agree a lot is riding on who forms the next government

Channel firms have already voiced concerns over the election outcome after the Tories this morning fell short of an overall majority.

The form the next government will take is still far from clear and business groups and channel onlookers are concerned that a hung parliament could hamper business owners’ attempts to plan ahead.

Phil Orford, chief executive of the Forum for Private Business (FPB) admitted he had hoped that one party would win an overall majority to secure a swift economic recovery. However, this morning’s figures reveal that both the Tories, and a potential Labour-Lib Dem coalition would fall short of the 326 seats required to command a majority.

“I expect many smaller businesses will be disappointed that the election has resulted in a hung parliament,” said Orford.

“However, the outcome can’t be changed so it is vital that the newly elected MPs put aside party politics and work together to come up with a credible system of governance."

Yolanta Gill, chief executive of education-specialist VAR European Electronique, agreed the outcome could lead to increased instability in the industry.

“Many would argue that a hung parliament will have more challenges to conquer as the new administration will have to combine policies and agree compromises," she said.

However, Andrew Binding, vice president of Northern Europe at distributor Magirus, was more philosophical.

“Everyone has known for three or four weeks that this was where we were heading and the problems we face are the same no matter who comes in," said Binding.

But he conceded that a lot is riding on the next government’s attitude to IT - more details on which can be found here.

“It could go one of two ways," he said. "They could see IT as essential to helping drive efficiencies, meaning budgets would continue quite strongly. Or, they could see it as an easy area to make cuts. We have heard talk of the money wasted on IT projects in the NHS, for example. At the moment it could go either way.”

Gill also said the hung parliament added to the uncertainty around education spending plans.

“Both parties have pledged, to varying degrees, to continue with investment in education," she said. "As the most successful IT provider to the Government Academy Programme, we are hoping that the government will continue with their proposed extension to the Academy plans."

And Binding was resigned to a long wait to find out who forms the UK’s next government. “I look forward to clarity on who the next government will be – but it may take a week,” he said.