Labour's welcome with City lawyers is well and truly worn out with partners set to back Conservatives in general election despite lingering fears over business policies. Friederike Heine reports

City partners are backing David Cameron and the Conservative Party as the most credible option in this year's general election, despite persisting doubts over Tory economic policy and recent polling figures indicating the possibility of a hung parliament.

Almost two-thirds (63%) of respondents to Legal Week's latest Big Question survey said they are likely to vote Conservative in the upcoming election, compared with only 20% support for the Labour Party and 15% for the Liberal Democrats.

Cameron was cited as the most credible political figure to lead the country – chosen by 67% of respondents. Current Prime Minister Gordon Brown received 25% of the vote and Liberal Democrat Nick Clegg gained 8%.

However, many of the partners surveyed voiced uncertainty about the Conservative Party's business policies, with 21% describing them as 'not very good' or 'bad', with well over a third (39%) judging them as simply 'okay'. Less than a third (30%) of respondents described Conservative economic policies as 'good', with just 4% rating them as 'excellent'.

In particular, shadow chancellor George Osborne's proposal to abolish the Financial Services Authority (FSA) has come into criticism from some quarters of the legal profession.

Lovells senior partner John Young commented: "I find the Tory pronouncements to break up the FSA quite alarming. The FSA has been doing an increasingly good job over the last few years, and getting rid of the body is an ill-considered move."

On potential budget cuts, one partner responding to the survey commented: "My biggest concern from a business point of view about a Conservative Government is them cutting too early, too fast, too much, and plunging us into a double-dip recession."

Despite this, two-thirds of respondents (66%) said a Conservative victory would either 'definitely' or 'probably' be the most beneficial result for the general business environment. In stark contrast, just 12% of respondents thought that a Labour win would 'probably' be best for the general business environment, with only 6% convinced that such an outcome would 'definitely' be best for City business.

When asked to identify the political party that would be best for the City's position as a major financial centre, 35% responded 'definitely Conservative', while 5% responded 'definitely Labour'.

A recent YouGov poll indicated a narrowing gap between the two main parties, highlighting the possibility of a hung parliament and leading to concerns over an uncertain economic future in the event of political deadlock.

On such an outcome, Ashurst corporate restructuring partner Giles Boothman commented: "It is difficult to predict what approach a minority or coalition Government would take or how stable it would be, but cuts in public spending and tax increases seem highly likely in all scenarios. The uncertainty of a hung parliament and possible second election will not be helpful."

A significant proportion of survey respondents also expressed disaffection with both of the main parties' policies, with almost one in five (16%) claiming that the result of the election will make no difference to the legal profession.

"The lack of any significant economic policy differences between Labour and the Conservatives, combined with our undemocratic voting system, is robbing the general election of all meaning and causing the general disengagement with politics," said one partner. "Let's be clear," commented another. "When I indicate who is best, I mean who is least bad."

McGrigors real estate partner Suzanne Gill commented: "Healing the bruised economy is the biggest issue at the moment. The Government has not come clean on the scale of the cuts that are going to be required, and [Liberal Democrat treasury spokesperson] Vince Cable seems to me like the only candidate who has shown the clarity of understanding that this country so desperately needs."

Partners on the General Election

• 67% think a Conservative victory will 'definitely' or 'probably' be best for the City's position as a major financial centre.
• 36% think the Conservatives' business policies are either 'excellent' or 'good'.
• 68% think David Cameron is the most credible option to lead the country.
• Only 5% think a Labour victory would definitely be the best outcome for the general business environment.

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