What will be the effect of a hung parliament

The Liberal Democrats yesterday denied that it had ruled out joining a coalition government if no single party won a parliamentary majority at this year's election.

The possibility of Britain's first "hung parliament" since 1974 has unsettled financial markets but Liberal Democrat deputy leader Vince Cable said it could be in the national interest "because it will force parties to work together in a way that single-party government won't."

He told BBC radio: "We will be very constructive in our approach to it, but we are not engaging in fancy games of working out who does what."

The Conservatives are favourites to win the election, expected in May, and so end 13 years of Labour rule.
But a series of polls has shown the Conservatives falling short of the support needed for a majority. The Liberal Democrats, who have 63 seats in the current 646-member parliament, could become kingmakers in that scenario.

Investors fear a minority or coalition government would not act decisively to bring down Britain's gaping public sector deficit, forecast to reach 178 billion pounds this year or more than 12 percent of Gross Domestic Product.

In my opinion the overriding factor that is going to cripple any short term economic recovery in the UK is the national debt, it is already at levels which are spiralling out of control and without a single party steering us (or at least attempting to) then we really could be left out to see without a paddle.

If you, like me, have grave concerns about Sterling’s strength against all world currencies coming into a new political cycle then speak to us soon. We have contracts that allow you to secure today’s exchange rates for up to two years ahead allowing you the comfort of knowing to the penny how much your overseas transfers are going to cost you.