Global business keeping a wary eye on election

THE global chairman of PwC has warned that uncertainty surrounding Thursday’s election is weighing on the minds of businesses which are preparing for the unexpected after Brexit and the US presidential vote.

Bob Moritz said businesses would be viewing the General Election very differently had it taken place at the same time last year, before the UK referendum or Donald Trump’s victory.

“Everybody’s watching. They’re probably assuming a certain outcome, but they’re watching carefully because everybody’s been surprised over the last year or so,” Mr Moritz told the Press Association in St Petersburg.

“I think the election is just another needle in the haystack that is tipping the balance…

“Because there is so much uncertainty and there are so many different compounding effects of that uncertainty, these institutions are scenario-planning quite a bit,” he added.

“So everybody’s going to watch carefully and adjust accordingly.”

The Labour Party could make waves for business after pledging to reverse corporate tax cuts – raising the rate to 26% – and increasing taxes on certain financial instruments such as derivatives.

However, Mr Moritz said he does not expect client demand for tax advisory services to rise if Labour gains power.

“I don’t see it changing significantly one way or another – there’s enough uncertainty in tax today, irrespective [of the election result]… Because not only are you dealing with rising tax rates … it’s also the play between countries on a worldwide basis.”