A NEW prime minister coupled with a reinvigorated Conservative party will create "uncertainty" for business in 2007, the new president of the CBI said today.

Martin Broughton, who is also chairman of British Airways, predicted that the coming year will herald a period of political change and manoeuvring that he said should not be allowed to hold back moves to improve industry's competitiveness.

Stability on the domestic front was increasingly important for British industry, he said.

"The coming year will see significant changes in British politics. These will generate new opportunities for business, but will also create uncertainty as it tries to plan long-term investments and strategies amid the shifting political sands.

"Business will not be moved by party political grandstanding, but will react positively to initiatives that actually improve the ability of companies to get on with their job.

"Politicians cannot afford to take business for granted, any more than companies can take political or public trust for granted.

"The relationship between business and politicians is critical as the coming year sees legislation vital to UK competitiveness - ranging from skills to energy security and the planning system - coming before Parliament. This must not be derailed by politicians in pursuit of extra votes by taking a sideswipe at business, however unwitting."