ABFA has reported on its web site that “It is excellent news that a new government has been formed and this positive step should help reassure businesses that a credible and effective steer on economic policy will be forthcoming, rather than facing the nightmare alternative of a continued hung parliament and further elections.”

The ABFA welcomed both David Cameron as Prime Minister and Nick Clegg as Deputy Prime Minister and looks forward to detailed policy initiatives to in support of UK firms.

The article continues: “In particular we agree with their latest moves giving capital gains tax exemptions for entrepreneurial business activities which can only help boost SMEs, plus support the major loan guarantee scheme in its goal of improving access to finance for UK firms.”

However, the ABFA has concerns regarding the recent statement from the new government on implementing net lending targets for the nationalised banks and sees this move as potentially damaging for both UK companies and banks alike.

They conclude: “That said we consider the move towards giving the Bank of England charge of macro-prudential regulation, whilst overseeing the FSA’s role as the micro-prudential regulator, as highly sensible and workable.”