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UK Election: What is at stake for businesses, investors and the job market?

Publish date: Wed, 18 Dec 2019, 02:29 AM
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Meta description: UK politics appears to be in a whole different place since the UK elections, but what does that mean for businesses, investors and the job market?

You would have received good odds on Boris Johnson cleaning up the election with an 80-seat majority - and that is what happened. The main take away on this result is that Brexit is almost certainly going to be finalised by February 2020.

With that in mind, what will be the repercussions for businesses, investors and the job market in the coming months?


The UK Job Market

One of the biggest shocks in the UK election was that traditional Labour seats in the north of England were won by the conservatives.

Off the back of these results, conservatives have been throwing confetti over the north with promises of more investment where it has been lacking. If the government keeps to these promises, it could be good news for the job market in the north.

More investment from the government on the infrastructure of the north means more jobs in Sheffield, Leeds, York, Newcastle and an array of coastal towns that are significantly lacking behind their southern counterparts. This would be welcome news for everyone, with job sites like Jobrapido being able to satisfy the growing market.


Stocks and Investment

The UK election result also made a difference in the stock market. Britain’s companies increased their combined wealth by more than £30 billion and 16 Brits currently on Bloomberg’s rich list made combined gains in excess of £2 billion.

The most direct influence of the UK shooting down a potential Labour government was noticed in the companies that Jeremy Corban and co had earmarked for nationalisation. As part of their manifesto, they promised a nationalisation of energy companies, but as a significant Conservative majority became clear, stocks in these companies shot up. In fact, shares in BT experienced a 6% rise as a result of the vote.

The GBP has also made strong gains since the vote. By Friday the pound was worth US $1.35 but has dropped off slightly to $1.33. The pound is also up against the euro which is good news for Christmas holidaymakers.

The early signs of the UK election result may be positive, but it could change when Brexit does eventually happen.


Businesses Post the UK Election

Businesses have been operating in limbo over the lead up to each Brexit deadline. The uncertainty surrounding Brexit has reduced investment in the UK from abroad and it has had negative effects for many businesses.

Now that the Conservative Party has a substantial majority in Parliament, they have paved the way to hit this Brexit deadline. In theory, this should reduce the uncertainty surrounding Brexit and enable businesses to operate knowing exactly where they stand.

Providing the UK government provides the correct information to business owners in good time, they will be able to prepare for the exit correctly and with fewer apprehensions. UK Businesses are now lining up to understand the next steps of the path ahead. Although the repercussions of Brexit itself on businesses may be a different story.

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