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Is a hung parliament really a bad thing?

Professor Philip Booth discusses how the economy might react in the result of a hung parliament

Thursday, 29 April, 2010

A hung parliament may not be as detrimental to the UK economy as many fear, according to Professor Philip Booth. Professor Booth believes that none of the parties have a credible plan for reducing borrowing in the medium term so there is bound to be uncertainty whatever the result is on May 6. In fact, he believes that a hung parliament might create a consensus on certain issues that could be beneficial, such as reform of the NHS, but reconciling differences on approaches to taxation will be a more of a challenge.
Professor Booth continues by criticising the tax plans of the Liberal Democrats as being clear but incoherent’ and those of the Conservatives and Labour as being non-existent. He concludes by saying electorate should examine which party they think is being the most truthful about the level of spending cuts that are going to be needed in the next parliament before the cast their vote.
The Cass Talks interviews are an opportunity to hear Cass faculty give their perspective on current business and finance news stories, global issues affecting the business world and new research coming out of the School.
Philip Booth is Professor of Insurance and Risk Management at Cass and is also Editorial and Programme Director at the Institute of Economic Affairs Listen, watch and download Professor Booth and see other Cass academics share their opinions at www.cass.city.ac.uk/casstalks

Permanent link to this story: https://www.cass.city.ac.uk/news/2010/april2/is-a-hung-parliament-really-a-bad-thing
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