After months of debates and opinion polls suggesting another hung parliament was all but guaranteed, last month saw the Conservatives pull off a surprising majority win. How the opinion polls got it so wrong is under investigation, although KashFlow research showed 53 per cent of small businesses supported the Tories thanks to promises of economic stability.
The Queen's Speech was the Conservative Party's first chance to give the electorate an insight into its five year plan and unsurprisingly economic growth was at the heart of the speech. It outlined how the Tories plan to support growth by promoting work and cutting at least £10bn worth of business red tape through Sajid Javid's enterprise bill.
Why should I worry about red tape?
Although many people let the enterprise bill announcement pass them by, red tape actually has the potential to impact us all. Latest figures show unemployment figures have dropped to 1.83 million.
However, if red tape prevents business growth, job opportunities diminish as companies invest in compliance instead of increasing the workforce. People will certainly take note if unemployment begins to rise again, especially after a record number of students went to university last year following the decision to raise the cap on undergraduates.
This is why it's vital the enterprise bill delivers on its promise to boost UK SME's ability to excel both at home and overseas. Otherwise, we'll soon see a record number of graduates out of work.
Building on the coalition
The previous government pledged to support business growth, yet red tape continues to add pressure despite the relative success of the Red Tape Challenge. The target of cutting £10bn worth of red tape was met, although a staggering 1,139 new laws were imposed on British business by the EU last year alone. Clearly more needs to be done to combat this growing issue.
Legislative compliance can be hugely time-consuming for SMEs, to the point where it may deter budding entrepreneurs from making the most of their potential and starting their first business. The government must act to ensure the enterprise bill is a resounding success, encouraging increased enterprise. After all, the more import or export revenue generated by start-ups, the quicker the economy will grow.
There is only so much we can draw from the Queen's Speech - as with any government, it will be judged on results rather than promises. Clearly, for the economy to really thrive, it's vital the Conservatives foster an environment which allows businesses across the UK to flourish. Only time will tell if David Cameron's Tories will succeed.