Britain’s Electorate Hits Back at the Tories in the Local Elections

Britain went to the polls once more on Thursday. This time around it was the local council elections.

While the local elections tend to have little to no global airtime, there was plenty of interest this time around.

It has been the first opportunity for the electorate to respond to the failings of the Tory government in delivering a safe passage out of the EU.

A backlash was anticipated and a backlash is exactly what the Tories received.

Elections were held for 6 mayors, 11 Northern Ireland councils and a total of 248 English councils.

Results will continue through the day, with the last of the results expected to be announced later this evening.

The Story So Far

So, with the results rolling out, the Conservative Party have thus far lost a whopping 396 seats and 14 councils.

Unsurprisingly, the Labour Party have fared better but have also suffered. The Opposition Party was down by 81 councilors and by 2 councils at the time of writing.

In stark contrast, the Liberal Democrats have ultimately benefited from the electorate backlash. At the time of writing, the Lib Dems had gained 271 additional seats and 7 councils…

Any fears of a UKIP return were allayed early on, however, with UKIP losing 54 seats.

Unsurprisingly, the Pound showed little response to the results rolling in and shift in Britain’s political landscape. At the time of writing, the Pound was up 0.07% to $1.30314.

While the Pound showed little response, there was a message from the electorate. A General Election would certainly bring a heightened degree of uncertainty to the UK and the Pound.

If the results are anything to go by, Jeremy Corbyn would likely take number 10 Downing Street. It would be a remarkable victory if the Lib Dems spoiled the show.

The mandates are clear. The Tories want out, the Labor Party supports a 2^nd EU Referendum and the Lib Dem wants to restore Britain’s position within the EU.

What’s next?

How Theresa May handles a likely second wave of in-party revolting will be key. Her position at the head of the Conservative Party may be safe, by law, but there’s now even more reason for Parliament to call a vote of no confidence.

Looking across the news wires, more grassroots members of the Tory party were suggesting that the British PM considers her position. That’s certainly ammunition for the opposition party to attempt to force a snap general election.

Is this the last chance saloon for Theresa May and what’s in store for the Pound?

Economic resilience has impressed and BoE Governor Carney delivered an unusually hawkish speech on Thursday.

Clarity over Brexit, or even a decision to reverse the EU Referendum result and growth and inflation figures supporting the BoE’s latest forecasts could return the Pound to $1.40 levels with speed.

First thing’s first, however, and that’s a resolution to the Brexit enigma.

Can the latest local elections spur opposition parties into action?