8th May 2015
Sterling has rallied on the prospect of a majority Conservative government surprises investors.
As the final votes are counted, pollsters are predicting the Tories are on track to win a small majority of seats in the House of Common, taking 239 seats. A party needs 232 seats to win a majority.
The pound rose 1.8% against the dollar to $1.55 and 2% against the euro to €1.2796 – its largest gain since 2009.
The expected result is just another surprise in a long night of shocks. The exit poll was the first surprise as the Tories were predicted to take 316 seats, enough for Conservative leader to rule a minority government.
Labour has seen a dramatic fall in the number of MPs who will be taking seats in Westminster, with forecasts predicting the party will take just 233 seats. The slump in Labour seats is due to the rise of SNP in Scotland. The exit poll suggest SNP would take 58 out of 59 seats north of the border and has gone on to win 56 in a landslide victory for the nationalist party.
Labour leader Ed Miliband said it had been ‘a very disappointing and difficult night’ for the party.
Unsurprisingly, the Liberal Democrats were expected to see their number of seats decimated, which voters shunning the party following the decision to go into coalition with the Conservatives in 2010 and the U-turn on tuition fees. At the latest count, the Lib Dems held just 8 seats and it is predicted it will lose as many as 47 seats in what the party leader described as a ‘cruel night’ for the party.