UK electorate in limbo after Hung Parliament
On 18 April 2017, Theresa May called a snap election for 8 June 2017 to quash Westminster divisions that she claimed were posing a threat to the success of the Brexit process. At that time, the Conservative party held a 24 point lead over the Labour party with May seeking an overwhelming majority to seek her own mandate for a Hard Brexit. On 9 June 2017, the electorate were left with hung parliament, with the Conservative party securing 313 seats, 17 short of the required 326 majority threshold. So what went wrong?
Voters have been disillusioned worldwide with politicians and May failed to pay heed. A disastrous campaign, built on an expectation for victory left many voters frustrated with their choice. The Conservative manifesto included a U-turn on social care and a severe lack of transparency for the Brexit plan to which May was requesting a “strong mandate” for. May repeatedly claimed Corbyn would lead to a coalition of chaos while Corbyn capitalised on a strong shift of focus away from Brexit and onto public sector services amidst terror attacks, with a manifesto pledging higher spending in the NHS and Education sector.
The country is now left waiting. Theresa May is meeting with Arlene Foster, leader of the Democratic Unionist Party (DUP), at Downing Street today to secure the support of the 10 DUP seats in Northern Ireland to present a majority government at the Queen’s Speech. But this is not the only challenge May faces, with calls for her resignation and changes to her Brexit mandate leaving her clinging to power at number ten.
May has been apologetic to her party, taking full responsibility for those who have lost their seats and fallen victim to the rushed (and arguably unnecessary) decision to call a general election. In a recent YouGov poll, May’s popularity is now on par with Corbyn as voters are tied on who they think would make the best Prime Minster, with each gaining 39%. Meanwhile, 25% of Conservative voters feel Boris Johnson would be the best leader to succeed May, a figure that falls to 18% when non-Conservative voters are included.
The Queen’s Speech is set for Monday 19 June and many are hoping that post-election talks between the Conservatives and DUP can be concluded in time to prevent any delay. It must be noted that while this continues, so does the Brexit countdown with pressure to start negotiations promptly.
Uncertainty remains high while the government remains in balance, feeding delays to investment and household spending. In such times, cash balances naturally spike as a trusted safe haven. Do give us a call to discuss how we can help you to enhance your depositor protection and overall rate of return during these times.