A WARNING has gone out from the York and North Yorkshire Chamber of Commerce to the squabbling factions within the coalition Government.

Susie Cawood, head of the regional chamber, said in an emailed policy update to her 1,200 members: “The rose-garden romance between Clegg and Cameron seems like a distant memory following the thorny fallout between two coalition partners after the local elections and AV referendum.

“Arguments between the two parties cannot be sustained. The weak increase in GDP figures reaffirms the need for decisive and bold action to get the economy on track for recovery.

“Cabinet infighting and diluted policies will only constrain growth.”

Mrs Cawood said that the coalition had created a number of positive developments to support businesses.

“But significant action is still needed, particularly in regards to reducing the transport funding disparity between Yorkshire and the other English regions, and ensuring that the north isn’t disproportionately hit by the spending cuts.”

She praised the Government’s help for exporters, its improving access to finance and promoting innovation.

Policy developments such as Project Merlin, in which the UK’s four biggest banks had signed up to a deal covering lending, bonuses and transparency; the Red Tape Challenge; and the Trade and Investment White Paper were a step in the right direction.

“However, we still need further action and the Government must maintain its courage if it is to successfully deliver for business.”

She said that even before Labour took control of City of York Council in the local elections, the chamber had met the Labour leader, Coun James Alexander, now leader of the council.

“We will continue to work closely with him and the leader of North Yorkshire County Council, Conservative councillor John Weighell, to ensure that the York and North Yorkshire business voice is listened to at all levels of policy making.”