Will consumer worries settle down once the voting is over?
As the country goes to the polls, retailers will be trying to predict the implications of the outcome to the industry.

In the short term, the event may have had an impact on buying habits, with consumers possibly waiting to see how the economic landscape is likely to change for them before they commit to large purchases.

According to the British Retail Consortium (BRC), consumer behaviour has been mixed in the run up to and in the aftermath of the last two general elections.

For the 1997 (May 1) election, like-for-like sales figures grew throughout March (3.7%) April (4.1%) May (4.8%) June (4.5%).

So, throughout the main campaigning month of April, sales were up compared with the month before and went up again in the May.

However, in 2001 election (June 7) sales rose during the main campaigning month, but dropped in June. April rose 4.5 per cent, May increased 7.1 per cent, June was up 5.7 per cent and July had a rise of 6.1 per cent.

However, like-for-like sales figures were higher after each election than before in both cases.

BRC spokeswoman Kate Ison said: 'An election can be a period of excitement and can generate a certain feel good factor like with any national, high-profile event. Retailers generally benefit from this feel good factor in the same way as they are the first to suffer when consumer confidence is weak. Suddenly people have a positive attitude towards everything - including spending their money. This can obviously boost sales and general activity on the high street.'

Ison noted that an election can have a negative effect on the high street, because it can generate economic uncertainty that, in turn, weakens consumer confidence.

As retailer's results in recent months demonstrate, concern and uncertainty does make people cautious about over spending. If election campaigning largely revolves around tax and personal finance issues, this can also make a difference to consumer sentiment.

See below for the key issues the three main parties are campaigning on that could affect the retail sector in the long term:

Conservative

Crime

  • No increase in police, but 25,000 community support officers

  • More prison places

  • More cash for drug treatment

Pensions

  • Up to£500 reduction on council tax

Tax/economy

  • £4 billion tax cuts

  • End stamp duty for houses worth less than£250,000

Transport

  • Use retailers to fund train station improvements

Labour

Crime

  • 40,000 extra police

  • More drug rehabilitation places

  • Tougher ASBOs

  • More prison places

Pensions

  • State pension rises with prices

  • £200 reduction on council tax

Tax/economy

  • Raised stamp duty threshold to£120,000

Transport

  • Develop road use charging

Lib Dem

Crime

  • 10,000 extra police

  • decriminalise personal use of cannabis

  • Fewer ASBOs

  • Community work for non-violent offences

Pensions

  • Boost basic rate of pension by£100 a month

Tax/economy

  • Replace council tax with local income tax

  • 50 per cent tax on earnings above£100,000 a year

  • Raise stamp duty threshold to£150,000

Transport

  • Replace fuel tax with road user charging

  • Shift spending from roads to public transport

  • Limit road building schemes

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