3 Reasons a Hung Parliament is Great for Business.
Updated: Dec 22, 2018
Yet another surprise election result and misstep by the Conservatives. But this time thankfully the outcome has the potential to do more good than harm.
But why does a hung election work to our advantage and how can businesses capitalise?
What is a hung parliament?
So. Labour are back in the game and the Conservatives have lost their majority.
This has resulted in a hung parliament meaning no political party has enough seats on their own to have a majority in the House of Commons.
In practice, this means allegiances with minority parties are crucial for votes to be passed and greater compromise is needed.
Here are 3 reasons this is good news for business.
1. A softening of our Brexit stance
If ever there was a topic that requires compromise it’s Brexit. The Conservative hard Brexit juggernaut appears to have been slowed as the British people seem to have declared ‘not in our name’.
Leaving the single market may not now be a foregone conclusion which could have huge benefits for businesses wanting to trade with the EU and/or employ EU nationals.
May’s obsession with reducing immigration has already led to significant resourcing issues, with 75% of UK-based HR professionals reporting that their business has experienced recruitment difficulties in the last year.
2. Call for more constructive dialogue
With the greater importance of minority parties comes the opportunity for more voices and opinions to be heard. And there is no greater voice that needs to be heard than that of UK business.
Parliament has been reminded not only that it needs to ‘listen’ but also of the dangers of a blinkered political kamikaze mission. Businesses ignore politics at their peril and taking a ‘head in the sand’ approach does not hold government to account.
We need to be forming our own alliances and banging on the now open door of parliament and making our voices heard.
3. Putting the economy back on the agenda
There is a new window of opportunity for British businesses to remind the politicians of the need put the economy at the front and centre of political decision making.
The Conservative Brexit strategy to date has revolved around curbing immigration in a way that stands to damage the UK economy. The election result last week reminds politicians that we shouldn’t take a needlessly self-destructive approach to this problem.
A Sting in the Tail?
The overall result is hugely positive. However, the irony is, time constraints may mean we are now more likely to walk away from the EU with no deal.
Yes, parliament now has the potential to come up with a more favourable Brexit ‘wish list’ to take to the EU.
But, the Brexit clock is already ticking and it will take time for us to get our house in order. It is also highly likely the 27 EU member states will reject any extension to Brexit negotiations. So, we may simply run out of time to agree a deal.
What do you think about the result? How will it affect your business and does it alter your thinking?
Email us your thoughts.
Photo by Heidi Sandstrom.