REDUCING the national debt needs to be the first priority for the new coalition Government, business leaders in York have said.

Businesses have welcomed the fact that a decision has finally been made, creating more certainty, but have stressed the two parties must act quickly and together to bring down the deficit.

Adam Sinclair, chairman of York Business Forum, said: “It’s a very positive outcome given the configuration of the election results and it’s the best outcome for business.”

He said he hoped the coalition would provide a stable Government whose first priority would be to address the national debt.

“The first thing that needs to be done is an independent audit of the scale of the national debt so that everybody in the country can be advised of how big the problem is. Now it is being suppressed by the political agenda and that can’t be allowed to go on.”

Fiona Sidwell, chairman of the North Yorkshire Branch of the Institute of Directors in Yorkshire and the Humber, said: “Tackling the deficit primarily through tax increases would jeopardise the private sector and the country’s ability to pay for first-class public services in the future.

“Government needs to be much smaller so there is more space for businesses to grow.

Shaun Watts, president of York and North Yorkshire Chamber of Commerce, challenged the new administration to come up with a plan for business growth in its first 90 days, and be clear about where spending cuts would fall.

Simon Williams, North Yorkshire chairman of the Federation of Small Businesses (FSB), also welcomed the decision not to change Capital Gains Tax allowance, the long term goal to raise personal tax allowance to £10,000 and the possibility of a national loan guarantee scheme.