How will the election impact the UK economy?

With the dust now finally settled after the general election two weeks ago, it has allowed us all time to reflect on what the results mean for the country.

The Conservatives won a shock majority after Britain went to the polls on May 7th. The economy had been the major talking point in the build up to the election with the Tories positioning themselves as a ‘safe pair of hands’ to manage the country’s continued economic recovery.

Many feel that Labour ‘lost’ the debate over the economy after they failed to adequately dispel the perception that the previous Labour government left the country’s finances in a mess. David Cameron attacked Labour’s record, often producing the now infamous “sorry there’s no money left” note left in the Treasury by Liam Byrne.

Labour also proposed economic spending and implementing new taxes, as opposed to the Tories’ austerity led approach. This meant the country had a clear choice when it came to the economy.

The Tories proudly spoke of their record in government over the last five years and vowed to continue the job should they be elected. So what exactly does it mean now they are back in power and this time with a majority?

One obvious result of the Tories winning a majority is that it removes the short term political uncertainty as many were expecting another hung parliament. This could be good news for the economy and give confidence to previously uneasy investors.

However something which could negate this confidence in the UK economy is the proposed referendum on EU membership. Should Britain opt out of the EU foreign investment into the country could be at risk.

What are your thoughts on the election results and what will it mean for Britain’s economy?

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