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Experts say General Election could strengthen May’s Brexit hand

20 Apr Experts say General Election could strengthen May’s Brexit hand

UK Prime Minister Theresa May‘s call for a snap general election could bolster her negotiating position with the European Union (EU) and within her own party. Leading economists and political experts have praised the call for the election as it gives her a chance to establish a historic marjority.

Keith Wade, Chief Economist at Schroders said:
“If Theresa May can increase the Conservatives’ majority that would give her more power and room for manoeuvre when it comes to negotiating the UK’s terms of exit from the EU.

“With the Brexit negotiations expected to finish in March 2019, it would take away the pressure of a General Election in 2020 coming up. It would also give May a little bit more breathing space and less need to strike a final deal with the EU.

“We did see after the Budget that there was a small rebellion of Conservative MPs which was enough to cause the government to do a U-turn on its tax proposals for the self-employed and I think May has realised this could happen several times during the negotiations.”

Another thing Mrs May will need to be aware of is how easily anything can happen! Recent elections have shown that anything can happen at the ballot box with market and media analysts wrong-footed by the Brexit vote in 2016 and by the unexpected success enjoyed by anti-establishment candidates and parties around the world. Given this backdrop, definitive predictions are therefore hazardous.

Whilst David Docherty a Fund Manager said “In short, the election and its aftermath will bring new uncertainties for investors. Our task, as always, will be to look for mispriced stocks possessing the inflection points for a revaluation and material outperformance. If the market behaviour around recent political events provides any guide, the coming weeks and months should throw up many such opportunities.”