Here’s what was said
The Prime Minister, Theresa May has this morning met with her cabinet and said in a surprise statement live from Downing street that she has “reluctantly” called for a general election on the 8 June.
May is to table her motion in the House of Commons for a vote to take place Wednesday for the proposed general election. May will need two-thirds of MPs to agree to this to enable the general election to happen.
Here are a few of the markets reactions.
Carolyn Fairbairn, CBI director general, said: “With a snap general election now called, businesses will be looking to each political party set out their plans to support economic stability and prosperity over the next Parliament in a way that is fair and sustainable for communities across the UK.”
“Distraction from the urgent priorities of seeking the best EU deal and improving UK productivity must be kept to a minimum.”
“Firms will want to hear commitments from all parties to work in close partnership with business and back a new Industrial Strategy to make the UK economy the most competitive in the world by 2030.”
“It is essential to get the UK’s foundations right, from building a skills base for the next generation, to investing in infrastructure, energy and delivering a pro-enterprise tax environment.”
“As EU negotiations now get underway, firms are clear about the serious risks of failing to secure a deal and falling into World Trade Organisation rules. It is vital that negotiators secure some early wins and all parties should commit to working to ensure businesses can continue to trade easily with our EU neighbours, while seeking new opportunities around the world.”
“Whoever forms the next Government, they should seek to build a partnership between business and government that is the best in the world, based on trust and shared interest.”
Ed Heaton, founder and managing partner of property search agency Heaton & Partners, reacts to today’s snap announcement that a General Election is due to be held in June, he said: “I see the decision to hold a general election in June as a positive for the property market, particularly as the snap nature of the announcement, means that there has been no long build up with buyers and sellers wanting to hold off.”
“Whilst the outcome is widely expected to be a Tory landslide, the element of uncertainty is limited because of this. The prospect of five more years of Conservative rules will be seen by many as a real positive.”
Gary Turner, Xero’s co-founder and UK MD gave his response to Tuesday’s shock annoucement and welcomes the decision as an indication of more stable political leadership from the perspective of the Fintech industry.
Turner said: “Notwithstanding Brexit uncertainty, HMRC’s desire to completely digitise tax compliance and record keeping with their Making Tax Digital roll-out in 2018 and the effective unbundling of UK banking and payment services industries mean that British businesses are about to enter the most significant period of change and uncertainty we’ve seen for several generations.”
“London’s title as ‘Fintech’s capital’ is under threat because of Brexit – TransferWise’s founder spoke out only last week to warn startups about setting up in post-Brexit London, a stark reminder of the effect uncertainty is having on all business sectors.”
“The UK must fight to keep its title as the Fintech leader as cities like Seoul and Singapore take advantage of this instability to grow their offering, but to do this, we need secure and stable leadership.”
“The tech industry has called for a post-Brexit style visa to help combat the potential skills crisis that Brexit may cause, but immigration controls promised as part of the EU referendum are a huge obstacle here.”
“Westminster has been in turmoil since the referendum results were announced and more political certainty is desperately needed to help guide the country through the next few years and ensure the UK does not lose its title for any industry, but particularly its position in technology. For this reason a general election is welcomed, as a strong, united political front brought to Brexit negotiations has to be a good thing.”
British Chambers of Commerce (BCC) commented on Tuesdays decision to seek a general election. Dr Adam Marshall, director general of the BCC, said:
“Many business communities will understandably be concerned that attention will inevitably shift from the economy and the intricacies of leaving the EU to a potential election campaign. Firms will want to be reassured that the key challenges facing the economy will be front and centre throughout any election period.”