The country is waking up this morning to the prospect of a hung Parliament, possibly the worst result possible for running the country although in some ways not a bad thing as it will probably ensure some compromise and balance.
The Pound fell on the international markets and this will definitely impact online retailers. In the short term it means that your products are even cheaper overseas and if you’re selling in Dollars or Euros you should see more attractive rates for repatriating your funds. However this also means that if your purchase raw materials or stock from overseas you’ll be paying more and, if the pound doesn’t recover, your prices will have to rise. You may also pay more for services if the companies you deal with either don’t bill in Sterling or their costs also rise (think couriers and fuel costs).
It throws the government’s plans for BREXIT into disarray with negotiations due to commence in just a couple of weeks time. Far from having a strong mandate to proceed, it’s now not even a given that our current Prime Minister will remain in power for the long term (and possibly not even the short term).
It looks like the UK is back to essentially two party politics with the bulk of the electorate reverting to vote for either Conservative of Labour. However this is just one election and it could change again in the future, if people are unhappy with the way BREXIT proceeds it’s not inconceivable that UKIP see a resurgence and equally the Scots could revert to voting for the SNP in greater numbers.
It’s too early to assess how the election may fully impact your business and personal taxation. Labour are greatly strengthened and their policies obviously resonated with the electorate, but equally the Conservatives are so weakened without a clear majority than it would appear unlikely that they’ll be able to push through every change they wanted. Certainly the so called ‘Hard Brexit’ is going to be tough to push through and with a weakened hand the Conservatives are likely to have to consult more fully with Parliament.
What do you think the affect on your business will be, both in the short term and into the future?