The uncertainty is finally over for the UK's small businesses, as the resignation of Gordon Brown as Prime Minister, and the formation of a coalition by the Conservative and Liberal Democrat parties has delivered the country a new government, albeit one likely to have more than its share of internal disagreements over the coming years.

Ahead of the much anticipated, yet still slightly unexpected events of the evening of May 11, the Federation of Small Businesses had expressed the concerns of the small business community, with the results of a snap poll suggesting that at that point, 54% of firms did not intend to move forward with plans to expand, and 49% wanted another election in six months.

John Walker, the Federation's National Chairman, observed that:

"These figures worryingly show that small firms have lost confidence in the economy following the outcome of the election just as the business community was beginning to recover from the downturn. At a time of economic uncertainty small businesses really need a government – of whatever make-up – to get on with the job and set out a plan for dealing with the deficit and returning the UK economy to growth."

He continued:

"Confidence is vital for small businesses and we know that they want to take on new staff and grow their business, but are still cautious about whether the economy is strong enough to do so. The FSB is calling for a renewed economic stimulus to help small businesses continue to create jobs, get access to crucial finance, innovate and start up new businesses, to get us squarely on the road to recovery."

Meanwhile, the Forum of Private Business (FPB) also called for certainty in the immediate post-election period, arguing that the "uncertainty and confusion" caused by a hung Parliament would cause problems for small business owners trying to plan for the future, after research conducted by the Forum suggested that around 70% of small business owners had cited forward-planning as a concern, based on political uncertainty.

"With the economy still in a very precarious state and a mountain of public debt to be tackled, businesses owners need our elected representatives to move away from inter-party point-scoring and show political responsibility," Forum Chief Executive Phil Orford urged.

The FPB, although it describes itself as politically neutral, therefore cautiously welcomed the announcement of a new Conservative-Liberal Democrat alliance in Parliament, expressing its hope that the administration formed by the two parties will be "stable and functional".

Mr Orford explained that:

"Smaller firms urgently need some degree of certainty so they can begin to plan for the future. Hopefully, Mr Cameron's appointment will herald the beginning of a workable government which will ensure economic stability and give smaller firms the confidence to aspire and grow."

And went on to state:

"I would just like to reiterate the Forum's previous calls for politicians of all political persuasions to show responsibility and put aside their differences in order to avoid pushing the UK into further economic turmoil. It is imperative that our MPs put aside point-scoring and work together to make Britain a stable and prosperous place to run a business."

Although the fine print of Conservative-Lib Dem policies has yet to be hammered out at the time of writing, a number of key measures and proposals have been emerged, representing something of a mixed bag (as might be expected) for small businesses.

These include:

- Increases in capital gains tax rates on non-business assets;

- The introduction of a GBP10,000 income tax threshold;

- The continuation of the National Insurance increase set in train by the previous Labour administration;

- An indefinite postponement of Conservative plans to abolish inheritance tax for all but the most wealthy;

- Cuts in public spending this year amounting to GBP6bn (likely to be delivered in a June/July budget);

- Abstention by the Liberal Democrats in voting on a number of issues, including a tax break for married couples planned by the Conservatives, which is likely to prevent their passage through Parliament.