Bosses in the Bradford district believe that a hung Parliament would be bad for business.

The city’s chamber of commerce has echoed the results of a national survey that says businesses want a decisive outcome to the General Election on May 6.

The survey by the British Chambers of Commerce revealed that firms are becoming increasingly concerned about the potential impact of a hung Parliament on their business.

It said that only one in five firms was not worried about the prospect of no party winning a workable majority. The research also found that most firms believed VAT would increase after the General Election.

Mike Cartwright, policy executive at Bradford Chamber of Commerce, said that while many voters were expressing support for a hung Parliament in the hope of producing a political consensus, businesses wanted a clear and decisive outcome.

He said: “Our members locally would concur with the findings of the national BCC survey in hoping for a decisive outcome at the election.

“A hung Parliament would be very frustrating if it led to delays and indecision in economic policy and laws affecting business. Such a result would affect confidence at a time when firms want clear and consistent policies from the next government.”

David Frost, BCC director-general, said: “Instinctively, companies prefer a clear mandate to lead and govern. With our economy still fragile and the public finances in a dire state, the overwhelming concern is whether a hung Parliament will provide decisive action around the UK’s unsustainable deficit.

“Whatever the outcome of the election, whether we have a coalition government or not, we must see a credible plan to reduce the deficit and restore confidence within 90 days.”

Meanwhile another survey of company managers showed that businesses are still suffering from the recession, with job insecurity at record levels, A survey of almost 900 bosses across the UK found that two out of five said their business was “severely hampered” by the effects of the economic slump.

More than four out of five of those questioned by the Chartered Management Institute said the recession was still having a negative impact on them.

The business environment is now “fragile and frugal”, potentially delaying the country’s economic recovery, the report warned.

Morale has worsened in two out of three organisations, with many managers still making “tough choices” to keep costs down, including continuing pay freezes and a ban on recruitment.