Partners voice support for another Conservative-led coalition
Legal Week poll of nearly 100 UK-based partners reveals 70% think the incumbent government has been 'largely successful'
May 06, 2015 at 12:03 AM
4 minute read
With a hung parliament expected following the UK general election this week, most partners would prefer another coalition over a minority government, with more than two-thirds of respondents to a new Legal Week survey arguing a minority government would be bad for the economy.
Legal Week's latest Big Question survey, which canvassed the opinion of nearly 100 partners at leading UK and US law firms, found that 80% would prefer another coalition in the absence of a single party winning an outright majority.
Seventy-two percent believe a minority government would be either 'bad' or 'very bad' for the economy.
Twenty-five percent think a minority government would not affect the economic recovery either way, while 3% have faith in it being good for the economy.
Tim Frazer, London office head at Arnold & Porter, says: "Minority governments are totally unworkable and could cause a collapse and then provoke a new election such as the first Wilson government in the 1970s. We've had a coalition government for a whole term and we're still alive."
The research found that 70% of the respondents believe the incumbent coalition government has been 'largely successful', with a further 4% declaring it a 'total success'. In contrast 5% say it has been a 'total failure', with 11% denouncing it as 'largely unsuccessful'.
Some 43% of respondents believe policies brought in by the Conservatives and the Liberal Democrats through the first full coalition in Britain since Winston Churchill's wartime coalition in 1945 have significantly boosted the business environment in the UK, with a similar percentage (37%) saying it has 'marginally' helped UK businesses.
One senior partner at a magic circle firm says: "I think George Osborne has done a broadly good job in managing the economy. The involvement of the Lib Dems brought a number of socially liberal policies to the fore that otherwise we might not have."
However, some add that the government cannot take full credit for the UK's recent economic upturn.
"When you compare the European economy now to when the coalition took over we are in a much better state," argues David Hughes, a litigation partner at Dechert.
Frazer adds: "It is difficult to correlate. Business has flowed back into the City but I think it is more a result of global conditions."
The survey found that 64% of respondents plan to vote Conservative, 8% plan to vote Liberal Democrat, 21% will vote Labour, 3% plan to vote Green and 1% will plump for UKIP.
Given the strong Conservative leaning of the respondents it is perhaps not surprising that 74% say that if a Labour-led government had been elected in 2010 economic growth would have been 'weaker' or 'stagnated'.
With the SNP drawing up plans to support a Labour-led government, 54% of respondents believe such a combination would have a 'very negative impact' on UK business activity.
"The incentives culture would be really quite different," says a senior partner at a magic circle firm. "The mansion tax and top rate of tax would be a disincentive to talented people."
However, partners have other concerns about the current government, particularly the prospect of an EU referendum, as favoured by the Conservatives and not ruled out by the Liberal Democrats.
"Clients, particularly in the financial services sector, are very concerned about a potential EU referendum," notes Clifford Chance M&A and competition partner Jenine Hulsmann.
"Regulations decided at the European level often apply to countries that are not EU members. Businesses worry that, on an 'out' vote, the UK would lose influence but still have to comply with new rules to participate in European markets."
Meanwhile, Hogan Lovells chair and real estate partner Nicholas Cheffings says the government needs to deal with airport expansion.
"The UK is in danger of suffering materially without airport expansion. Dubai is now bigger than Heathrow.
"Paris, Frankfurt and Amsterdam all have greater growth capacity. Businesses in other parts of the world, particularly China, will locate elsewhere because of better connectivity."
With polls predicting that the Conservatives are set to be the biggest parliamentary party, come Friday morning it looks like partners could get their wish for a Tory-led coalition, subject to the numbers stacking up.
However, whether this will address the sector's policy concerns will depend on the detail of any deal that is struck to form a government.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllEU Parliament Gives Blessing to New EU Competition Chief Ribera Rodríguez
2 minute readUK Competition Watchdog Greenlights Google’s $2B Anthropic Investment, Lawyers Weigh in
Likely Next EU Competition Chief Keeps Cards Close to Her Chest in 3-Hour Confirmation Hearing
3 minute readTrending Stories
- 1Mediators for the Southern District of New York Honored at Eighth Annual James Duane Awards
- 2The Lawyers Picked by Trump for Key Roles in His Second Term
- 3Pa. High Court to Weigh Parent Company's Liability for Dissolved Subsidiary's Conduct
- 4Depo-Provera MDL Could Be Headed to California
- 5Judge Holds New York City in Contempt Over Conditions at City Jails
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250