It was a huge sense of relief, not euphoria, I felt upon wakening to the news last Friday morning that the country had the good sense to return a Conservative government, and with a working majority. Gone, thankfully, are the overplayed, hackneyed assertions from the pundits, pollsters and media speculators that we would be faced with protracted negotiations this week between the leading party and an array of also ran’s in some grubby melee from which an administration would emerge with a mix of the capable and a cast of over indulged side show players.
Where did it all go so right for Mr Cameron?
So, Mr Cameron, where did it all go so right? The Bill Clinton aside “It’s the economy, stupid” from his 1992 election campaign against George Bush Snr certainly rings true in this instance, so too does the old pantomime cry “He’s behind you!” reference: the rather large silhouette of Alec Salmond (Nicola Sturgeon was not even standing for Parliamentary election) looming large behind Ed Miliband. The threat of a lurch to the left with a Labour and SNP alliance, anti business, anti entrepreneurial, pro big state control, pro punitive taxing regime and old style socialism certainly did it for poor old Ed, and quite rightly so in my opinion.
Good for the licensed and hospitality trades
So, we have what we have, and what will that mean for the fortunes of the licensed property and hospitality market? My view is the return of a majority Conservative government will be very good for the health of our overall economy and the licensed and hospitality trades in particular.
Why? Because increased confidence in the health of our economy, a growing “feel good” factor, continued improvements to the number of employed, and the absence of punitive controls on the banks and the banking system will all oil the cogs to build solid momentum for a continued smooth drive out of the dire economic pit we have had to haul ourselves out of since the cataclysmic collapse we suffered in 2008.
The removal of the threat of relinquishment of zero hour’s contracts has to be a major relief to the leisure and hospitality trades. So too removal of a potential hike in the minimum wage and sharp rise in employers National Insurance contributions which were almost guaranteed to be served up by a Labour and SNP alliance government. Interest rates are, thankfully, also likely to remain very low for a good while to come. The pound and markets all rose sharply even on the news of the exit polls and continued through trading from opening last Friday morning.
A far more positive place
There is no question that the licensed property and hospitality sales and acquisition market is in a very different, far more positive place to where it was two years ago. I am firmly of the opinion that the market will continue to improve over the years to come, free of big state interventionism, and with a “Britain is open for business” message to UK businesses, Europe and the much bigger world beyond that.
By Paul Davey, Managing Director, Davey Co.
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