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Trade credit insurer Atradius comments on today’s general election result: PDF Print E-mail
Monday, 12 June 2017
Theresa May’s gamble of securing a strong mandate for the upcoming Brexit negotiations has failed, after her Conservative Party lost its absolute majority in Parliament following the UK general election.  

With 649 of the 650 seats declared, the Conservative Party has won only 318 leaving them without a majority in the house. The election outcome casts doubt on Mrs May’s authority and weakens the Government's position going into the Brexit negotiations and means that it could now be more difficult for the Conservative Party to progress Brexit-related legislation through Parliament.
On April 18, Theresa May called a snap election, with the aim of strengthening her Conservative Party’s mandate ahead of the Brexit negotiations. At the time, polls showed Mrs May’s Conservative Party with a strong 20%-point lead over Jeremy Corbyn’s Labour Party. As the election race unfolded, the polls indicated that the margins were narrowing, with the approval rating of the Labour’s populist policies rising dramatically.

The election result confirmed a swing towards the Labour party and although the Conservatives remain the largest party in Westminster, they will have no working majority. With Brexit negotiations scheduled to begin in the near future, the end to uncertainty that Mrs May had hoped for has not yet been resolved. As the election results began to be clear, the British pound once again came under pressure although markets are expected to rally as the news settles.
 
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