The 2017 UK General Election the results

The 2017 UK General Election has ended in a hung parliament after the Conservatives failed to secure the majority pollsters had predicted in the run-up to yesterday’s vote.

With just a handful of constituencies still to declare a winner, the Conservatives were projected to win 318 seats, Labour 261 and the SNP 35. This would mean Labour had gained 29 seats while the Tories had lost 13 and the SNP had lost 22. UKIP lost its only seat.

According to the BBC, the Conservatives were forecast to win 42% of the vote, Labour 40%, the Lib Dems 7%, UKIP 2% and the Greens 2%, signalling “a return two-party politics in many parts of the country, with Labour and the Conservatives both piling up votes in numbers not seen since the 1990s”. Turnout so far is 68.7% – up two percentage points on the 2015 election.

As the leader of the largest party, current Prime Minister Theresa May, who is already facing calls for her resignation, now has the chance to try and form a coalition government with another party or parties.

If she fails, other scenarios include Jeremey Corbyn’s Labour attempting a similar feat or either main party trying to run a minority government. The rules of the Fixed Term Parliament Act raise the possibility of a second election later this year.

The 2017 UK General Election the results

Here is Architas’ summary of the results and the impacts it may have on the markets:-

A summary from Architas – CLICK HERE FOR THEIR INFOGRAPHIC

Markets have not been pricing in a potential coalition so this could trigger a substantial bout of volatility where markets could swing between jumps and falls.

The increased uncertainty of a hung Parliament could lead to extended sterling selling.

We have been taking a cautious stance ahead of the election and have been adding to defensive positions – for example cash and gold – in portfolios in recent months given the recent uncertain global geo-political situation.

Spreading investments across a range of asset classes and fund managers will diversify your holdings and could help to provide a less bumpy ride for you and your investments.