Small business owners back Tories as New Labour sinks fast

New research shows that nearly two thirds of small business owners believe that the Conservatives best understands their needs - compared to a dreadful 6% expressing the same sentiments for the Labour Party.

62% of the SME owner-managers surveyed by The Tenon Forum believe the Conservative Party best understands the pressures entrepreneurs face, an increase of 34% since 2006. A shocking 6% believe the Labour Party represents their best interests – only slightly ahead of the 3% supporting the Liberal Democrats.

After a long period of apparent stagnancy in British politics, it appears that we are witnessing a strong swing in favour of the Tories in the business world, as well as in recent elections.

Just 22% of the SMEs questioned felt that no political party understands entrepreneurial concerns, compared to more than twice this figure (58%) in 2006. The East of England is demonstrating the fiercest support for the Conservatives (70%), whilst the East Midlands and the North West remain most sceptical, with a quarter feeling none of the political parties represent them.

According to the research, Alistair Darling’s poorly-received first Budget has played a key role in alienating UK entrepreneurs. Over half (57%) of small business leaders claim their company is worse off since legislation introduced in the Budget, with just five per cent stating they are better off. It also seems that the UK’s smallest businesses have been hardest hit, with 68% of those in organisations employing between five and 19 staff feeling worse-off since Budget 2008, compared to 47% of those with between 100 and 249 employees.

The Government’s plans to introduce legislation banning income shifting from 2009 have also proved deeply unpopular with entrepreneurs, with 43% of those running family businesses claiming it will increase their tax bills. One in ten claim they will stop employing family members if the legislation goes ahead, whilst 13% say they will be forced to set up their business in a different form.