Are we on the verge of a change in government?
The last couple of days have seen Parliament grab the headlines for the wrong reasons with scandal, resignations and internal bickering happening on all levels of UK government. It looks highly likely that we could see a significant change in the direction of the Labour Party and the UK government, with calls for an immediate general election growing stronger. So how will this affect the UK economy and the eventual recovery?
While the calls for a change of government are growing stronger each day and Cabinet ministers are leaving a sinking ship there are serious concerns about the short to medium term outlook for the UK economy. If an election was called tomorrow there is every chance that the UK economy would suffer from potential neglect in the short term which could have disastrous consequences for the future.
There is also the situation that a government which is lacking in control may not have the power to push through decisions such as the part sale of Royal Mail and other similar operations which have received severe criticism in many quarters. From a totally unbiased point of view it seems that the UK government is currently treading water, under attack from overseas allies and a general election may well be the best course of action for all concerned.
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