by Trevor Sturgess

Bosses worried about hung parliament uncertainty have called for an all-party economic group to reassure markets that the UK is serious about cutting the deficit.

With no party winning an outright majority, days of political horse-trading could upset markets. Share prices and sterling fell back as the outcome of the General Election became clearer overnight.

David Philpott, chairman of Kent Institute of Directors, which represents 1,700 senior business people, called for a group of experts from all the main parties to address the key priority of tackling the public sector deficit. The group would reassure investors that the UK took the deficit seriously and was taking action.

"The prognosis for the economy and business is really not good, so unless these leaders can get together and realise that this issue is bigger than party politics we’re just going to have a year of uncertainty as the economy unravels," he said.

"It would be bold and honourable if all the parties signed up to some kind of economic policy going forward irrespective of what their other agendas are because the economy is the big issue right now and we need to tell the international markets that as a country we’re going to tackle this together."

Jo James, chief executive of Kent Invicta Chamber of Commerce, representing 1,000 businesses in Ashford, Canterbury, Maidstone and West Kent, said uncertainty damaged business confidence.

"The finances are key and everybody pulling together is what we need. At least it shows that everybody is united. We can have in-fighting on different issues but when it comes to financial stability to ensure we get out of this recession, everybody’s got to be working in the same direction."

Meanwhile, Charlie Menegatos, senior trader at Accendo Markets, said a hung parliament would lead to ongoing uncertainty in the markets "until the parties put their differences behind them and form a workable majority."