Hung Parliament: what happens now?

With no party gaining a majority in the General Election, the UK looks set to face a period of uncertainty about the outlook for policy, Brexit and the possibility of another election. It is still very early days, but here we address some initial questions that clients may have about what happens now. Does a hung parliament spell disaster for the economy? Uncertainty while the political situation remains unresolved could weigh on sentiment and delay business decisions. However, the economy has proved pretty resilient to political uncertainty in the recent past. And even if the Conservatives are able to govern with only a slim working majority, there have been occasions in the past when weak Governments have been able to hobble on without any discernable negative impact on the economy.