Theresa May: Market reactions to Tories doing a deal with the DUP

What’s your thoughts?

The CBI has updated its response to the General Election results, following an agreement between the Conservative party and DUP to form a new Government.

Carolyn Fairbairn, CBI director general, said:

“With a new Government, there has never been a more important time to refocus on the economy and plan with confidence and ambition. The next Government needs to deliver an open, competitive and fair post-Brexit economy that works for everyone across all our nations and regions.

“This can only be achieved if the next government doesn’t put the brakes on business, remains open to the world and sets out a pro-enterprise vision.

“We need to move much faster to fix the foundations of the UK economy and our productivity problem. We need meaningful progress on a modern industrial strategy by the end of the year, with real change on the ground on skills, infrastructure and innovation. 

“With only ten days before Brexit talks begin, the UK needs to be fast out of the blocks. Agreeing transition arrangements and guaranteeing EU citizens’ rights should be early priorities to get the talks off to a good start and show to the world that trade and people come first.

“Firms will support the UK develop our inclusive, innovative and open economy. More than ever, the new Government must work together with business to make the most of the opportunities ahead. Firms can provide the evidence, ideas and solutions from the shop, office and factory floor to secure our future prosperity.” 

Daniel Machover, from law firm Hickman and Rose, said:

“The risks of a Tory/DUP parliamentary alliance are considerable.  The DUP election manifesto implied a clamp down on “demonstrations against Homecoming parades.”

“Drawing the British Government into this scenario while possibly hardening borders with the Republic is a horrendous prospect.

“The Conservative program of cutting police numbers, diminishing human rights protections and restricting access to judicial oversight of state action through the courts gets ever more problematic.  And Mrs May’s manifesto plan to abolish the SFO and hand its duties to the NCA now looks like fiddling while Rome burns.” 

 Markus Kuger, senior economist, Dun & Bradstreet:

“After the surprising election result, which has produced a hung parliament, political and economic uncertainty in the UK has risen considerably. We predict that the formation of the next government will be time consuming, and given that the country will either be run by a minority government or by a coalition with a very slim majority, further elections cannot be ruled out.

“Given the backdrop of an already slowing economy (the UK posted the lowest real GDP growth of all 28 EU economies in Q1 2017) and a ticking Brexit clock, the challenges faced for businesses operating in the UK have only increased.

“We believe it’s highly unlikely that the first round of Brexit talks between the British government and the EU will go ahead as scheduled on 19/20 June, which means that companies will have to wait even longer to assess the impact of these negotiations on their business.

“Our analysis indicates that uncertainty will remain high in the next 18 months, regardless of the eventual election outcome. We are maintaining our risk rating of DB2d and our ‘deteriorating’ risk outlook for the UK economy.  

“We predict that in the long run, the election result could make a ‘hard’ Brexit - which we believe would be harmful for the British economy - impossible. The best advice for businesses is to monitor the progress of negotiations, and use the latest data and analytics to assess risk and identify potential opportunities. A careful and measured approach to managing relationships with suppliers, customers, prospects and partners is key to navigating through these uncertain times.”

 James Davis, CEO and founder of online lettings agency, Upad.co.uk, speaks on the shock General Election result: 

“The landlord bashing is only likely to continue with Theresa May forming a deal with the DUP to allow her to continue leading the country. There were no new pledges set out to help struggling landlords in her manifesto.

“The Tories have proven that they can’t be trusted by landlords; as they continue to use them as a political football to kick around. I certainly wouldn’t let one of my properties out to a Tory as you can’t trust them! Whilst the Conservatives have recognised that the 8m tenants in the UK are worth supporting politically, what they don’t seem to realise is that the changes they want to bring about for landlords, will eventually through the test of time affect tenants far more through higher rents.”

Andrew Clough, managing director, The Brew comment on General Election result:  

“Calling an election was a cynical and opportunist move from the Conservative Party and the result shows that the electorate have seen through Theresa May.

“The disaster of the manifesto launch and their constant U-turns showed the Tories were just saying what they thought people wanted to hear and it’s now impossible to trust anything they say. Ultimately, a Conservative government will only benefit the top rungs of society and the result shows that much of the country have woken up to the reality.  

“Gains by Labour also show how angry voters are about the EU Referendum and the Conservatives insistence in pushing for a ‘Hard Brexit’. Jeremy Corbyn and the Labour Party, would give us a more watered-down version of Brexit, which works better for businesses. Labour’s plans would also mean a tax system that will give us more money to spend on education, skills, health, police, infrastructure and other public services. Businesses rely on people being educated, healthy and safe, so it makes sense for them to pay more back into the system.  

“The stability of the country must obviously come first. Theresa May looks vulnerable, so I’m curious as to whether the current proposal for the Conservatives to work with DUP is sustainable or whether we’ll be back at the polls in the autumn (as some commentators have suggested). Though one upshot of such a coalition is a softer, more business-friendly Brexit.

“But in my opinion, Theresa May must go and a minority Labour Government or progressive alliance is the only way to achieve a fairer society, that also works in the interest of business.

 

 

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