Comment

Election outcome: An opportunity to rebalance the economy?

The influence of Brexit on the election outcome is plain to see. The clarity offered by the Conservatives on leaving the EU has secured them a strong majority that will give them confidence in pursuing their domestic agenda.

That this appeal stretched into areas that have not sent a Tory representative to Westminster for generations is perhaps the most surprising outcome. As Mr Johnson acknowledged in his rallying cry to supporters this morning, the trust placed in the Conservative administration brings responsibilities to deliver, particularly in these parts of the north and midlands.

That majorities have narrowed in some ‘shire’ areas will not go unnoticed and may not significantly embolden a Government that regularly shied away from difficult planning decisions especially on housing and Green Belt.

In parts of the UK that have seen less investment the new Conservative leadership may be more inclined to boost growth to “level up” the economy. This might mean being bold on investment in infrastructure, support for town centres and delivering more housing. It will surely give confidence to press ahead with commitments to free ports and a gigafactory, investment in the low carbon economy and expanding renewable energy.

It will be interesting to see whether the success of nationalist parties in Scotland and Northern Ireland prompts a different approach from the Westminster administration. The extent of devolution to the Scottish Parliament gives Westminster fewer levers to pull and the resumption of an Assembly at Stormont will surely be a prerequisite for significant new investment.

A common request from the property industry across the UK will be that Government gives early signs of its focus on the domestic agenda through positive action on increasing economic growth, addressing the housing crisis and tackling the effects of climate change.

13 December 2019