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2017 General Election ends in a hung Parliament

| Friday June 9, 2017

In one of the most momentous election results in modern British history, the 2017 General Election has resulted in a hung Parliament. Defying initial speculation that Theresa May would lead the Tories to victory when she called the snap election in April, the Conservative Party has lost its parliamentary majority following a considerable electoral swing to the Labour Party.

What does a hung parliament mean?

To form a majority government, a political party must win at least 326 seats in the House of Commons – more than half of all the constituencies in the UK. Neither the Tories nor Labour have reached the 326-seat threshold.

Potential outcomes

While the exact implications of yesterday’s vote will be revealed over the coming days, Theresa May has already voiced her intention of forming an alliance with the Democratic Unionist Party (DUP) following her private meeting with The Queen today. This will result in a Conservative-led coalition government charged with managing Brexit negotiations.

Should this not transpire, Britain could be faced with the following likely scenarios once Parliament convenes on 13 June:

  • Theresa May forms a minority-Conservative government, risking the Conservative Party’s ability to pass legislation
  • Theresa May resigns and Jeremy Corbyn forms a Labour-led coalition government
  • With no party able to form a government, a second General Election is called

The 2017 General Election result caps 12 months of political shocks. Nonetheless, there is no doubt that British economy will demonstrate the same resilience displayed following the EU referendum verdict last year. A strong and confident government with the resolve to lead Britain through Brexit negotiations is of absolute necessity, with Britons already confident of the opportunities leaving the EU will present.

Recent Asset Match research found that consumers are overwhelmingly confident in the long-term growth prospects of British businesses during this unfolding era of transition. 27.21 million Brits believe Brexit will open up new opportunities for UK companies to expand globally, with nearly half of UK adults recognising entrepreneurs as the champions of the UK’s post-Brexit economy.

Examining investor sentiment

Once there is greater indication of how the next government will be formed, Asset Match will be asking a nationally representative sample of 1,000 UK investors about their views on the newly elected government, and the impact the election result is likely to have on their investment strategy. Moreover, the research will measure investor sentiment towards scale-ups and how they perceive Brexit will impact the nation’s entrepreneurial talent.

We look forward to sharing this with you in the coming weeks.