Business leaders expect "more of the same" after the General Election, due in May.

But they foresee clouds on the horizon with fears of new taxes and a growing national debt.

The Essex Institute of Directors predicted a slowdown in growth and the pressure of tax rises already in the pipeline.

"We do not expect much to change but we will be watching to see if areas targeted by the Government show some improvements," said its chairman Nicholas Cook.

These included immigration, transportation and education, particularly skills.

He said: "Despite its intentions, there has been a failure to deliver on its promises in many key areas."

John Clayton, chief executive of the Essex Chambers of Commerce, expects new faces in the Government to give it a sharper edge.

He said: "I think there will be fresh faces and I hope these will be in the ministries most affecting business.

"Business needs a continuous impetus to sustain itself. There is a sign of tiredness in some areas of Government and they need freshening up."

However, he was concerned about new "stealth" taxes, adding: "Either taxes must go up or borrowing must rise and as borrowing is already extremely high, the likelihood is that it will be taxes."

But business leaders predicted "no change" at the election

"Labour has learned to be pragmatic and in touch with reality and there is little to distinguish it from the Consesrvatives now," said Mr Cook.

Published Wednesday February 9, 2005

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