The Tories Prove Triumphant - But what does that mean?
The votes are in, they’ve been counted and verified and David Cameron is returning to Number 10 Downing Street to prepare for another term as Britain's Prime Minister. The UK general election has secured an absolute majority for the Conservative Party in the House of Commons. By mid-morning on Friday the party looked set to win its largest tally of seats in more than 20 years.
But what does it all mean? What are the ramifications here in Portugal? More importantly, we all want to know is it a good thing?
The answer thankfully in short: Yes.
In the run up to the election, worries about an uncertain result sent the pound tumbling against the euro. But as the election result became clearer, the pound has shot up.
On the morning of 7 May, you could get €670 for £500, but the morning after the election, 8 May, you could get €688.53. This is hugely triumphant for Portugal investment, with a large significant return for the pound.
It’s not only the euro that has seen a change this morning, as the results have rolled in, the British pound has exploded higher against the dollar, rising as much as 1.4% to around $1.545.
Another positive note for a Conservative win is that wealthy Britons can breathe a sigh of relief as Labour´s “Mansion Tax” will no longer be a reality. 97,000 home owners in the UK would have been affected by this tax that targets home owners costing £2m and above, thankfully this is no longer the case which in turn will lead to further property movement in the UK, further favouring the decline of the deficit.
A Conservative government can now continue with the good job they were doing. George Osborne was credited last week for successfully making the UK the “fastest growing economy in Europe”. With a Conservative Government now set to lead the country, this proven economic stability is set to continue. His policies including more perks for pensioners and brutal cuts for benefit claimants will ensure this growth will continue. There will be no increase of National Insurance, income tax or VAT. The tax-free allowance will jump to £12,500, so people’s take home pay will be that little bit nicer every month. The conservatives also plan to raise the threshold of the 40p tax band so you have to earn at least £50,000.
So here in Portugal we should rally behind Mr. Cameron and his Conservative Party. Leverage the power and strength of the sterling and persuade those wealthy Britons to invest in the Portuguese real estate industry. We now wait in anticipation as The Conservatives have pledged to hold an in-out referendum on the UK’s EU membership by 2017. Let’s see what the future brings.
I leave you with the words of the winner today Mr. David Cameron, after he won his own seat at Witney.
Congratulations Mr Cameron from all the team at Prime Properties!
“In short, I want my party, and I hope a government I would like to lead, to reclaim a mantle that we should never have lost - the mantle of One Nation, One United Kingdom. That is how I will govern if I am fortunate enough to form a government in the coming days." David Cameron