Pent-up investment will flood into Britain post the emphatic Conservative election victory, say experts.
Brent Hoberman, founder and investor, who speaks for many on tech issues, told the Financial Times there were “hundreds of deals held back because of fear of a hung parliament or Corbyn government. We expect a boost in business confidence and people to start investing again in the UK”.
Rhydian Lewis, founder of fintech RateSetter, said that fintech investment, which stalled this year “pending the Brexit morass and the election … that investment could well clear now”.
Hoberman, who co-founded LastMinute.com, hoped the crushing Conservative majority “could lead to a softer, more business-friendly Brexit”.
The Conservatives enjoyed their biggest general election victory since 1987 under Margaret Thatcher, while Labour suffered its worst election result in living memory.
Nigel Green, CEO of financial advisor deVere Group said: “Billions of pounds in business investment that has been on the sidelines due to the parliamentary paralysis is now ready to be unleashed. This will give a much-needed boost to the slowing British economy.”
Jonathan Geldart, director general of the Institute of Directors, said that company directors must now see progress on challenges that have been holding the economy back, from skills to infrastructure. Many directors are waiting for action on manifesto commitments such as incentives for R&D investment and business rates reforms.
One listed company chairman told the Financial Times that “a large Tory majority is better, implying that the PM would then be able to take closer to the centre, away from the more extreme voices in his party”.
However, Green warned: “There’s still a long way to go. Mr Johnson’s self-imposed end of December 2020 [Brexit] deadline is a mammoth challenge, and a no-deal Brexit is still possible on 1st Jan 2021.”