It will come as little surprise to many that the UK has experienced the first hung parliament since 1974.
Although the Conservatives were the clear winners, securing the largest number of seats (currently 298 and still growing), it hasn’t been enough to win overall, resulting in a hung parliament.
We have already witnessed, first-hand, the impact this has had on the economy with the pound dropping against the U.S Dollar and the Euro. According to latest figures the pound sterling has dropped by 3 cents against the dollar at $1.4633, and by 2.6 cents against the euro at 1.1478 euros.
The World markets are understandably concerned that a weak government may be unable to reduce the UK’s high deficit quickly.
The Director General of the Institute of Directors, Miles Templeman, echoed the thoughts of many business leaders around the country, commenting:
“It’s vital that this political vacuum is filled as quickly as possible. The country simply can’t afford an extended period of political horse-trading which delays much-needed action to tackle the deficit.
“Politicians have postponed the difficult decisions on public spending cuts for too long already. Further delay will only jeopardise the future of the UK economy.”
Dr Adam Marshall, of the British Chambers of Commerce, has urged, on behalf of the business community, for all the main political parties to “put political horse-trading to one side and put the UK economy at the heart of their thinking. Strong leadership and consensus are required to deal with the serious threats still facing the economy.”
Dr Marshall added that British businesses want to see a fast resolution to political negotiations and form a government with an agreed policy of putting the economy first and foremost.
So it now falls on the main parties to form a coalition government. In spite of this, Gordon Brown does not look willing to give up power easily, walking back into Number 10 Downing Street this morning, radiating defiance in the face of defeat.