View more on these topics

MM leader: Shock election points to unstable future

As soon as that exit poll came out at the top of election night pointing towards a Conservative majority, the shock among political pundits (and indeed the electorate) was palpable.

The pollsters, who had been widely forecasting a hung parliament, had to hastily rip up their predictions. The resounding support for the Tories, as well as the SNP, has meant there will be no return to the heady scenes in the rose garden back in 2010, at least not for another five years.

In the wake of the result, there has been talk of electoral reform to the system that saw Ukip gain four million votes and one MP, and much speculation around who will lead a shaken up opposition Labour party.

But as Cameron holds his first all-Conservative Cabinet meeting for 18 years, advisers need to be wary of what could spell yet more significant changes to the political landscape.

Chief among those is whether the UK continues to remain in the European Union. And not just the decision itself, but the two years of uncertainty leading up to the in/out vote. For the financial services industry, as with other sectors, the EU referendum casts a shadow over where firms decide to base themselves, whether to invest in their business, and perhaps what regulators they would be subservient to.

The new Government will also need to address the state of a different kind of union – Scotland’s role in an increasingly less “United” Kingdom.

The issues outlined above are common to both the EU and the Scotland debate. The implications of the SNP’s performance in the polls are also more nuanced depending on what kind of devolved powers Scotland ends up with. Will they be able to set rates for more than just income tax? What will be the knock-on impact for tax planning, and will this result in a tide of advisers and other financial firms concluding that, business-wise, one side of the border is preferential to the other?

These are big questions, and the answers will undoubtedly be difficult to come by.

But amongst all the noise about Europe and Scotland, we must not forget there will be a raft of changes even without all the political rumblings in the background.

Amongst the Tories’ pledges are funding IHT reform by cuts to higher rate pensions tax relief, expanding Right to Buy, and maintaining what some say is an unsustainable promise on the state pension triple-lock. You almost wish this was a party not prepared to keep its election promises.



Malcolm McLean: Is there a future for the state pension?

Pensions have not featured massively in this year’s election debates, although on other occasions, for older people at least, this has usually been an issue that has materially influenced voting intentions. This is especially so when it comes to the level and sustainability of the state pension. This year’s election has seen politicians of all […]


Ros Altmann confirmed as pensions minister

Prime minister David Cameron has confirmed Ros Altmann is to be pensions minister, days after she told Money Marketing she had turned down the role. Prior to the election Altmann said she would be minister responsible for consumer protection and education. She said she did not want to be pensions minister because she thought she […]


TSB rolls out B2L proposition to broker panel

TSB has rolled out its buy-to-let proposition to the rest of its broker panel. The lender has been piloting its buy-to-let proposition with London & Country for the past two months. Initially, TSB has made available five-year products with further deals to be launched over the coming weeks. Rates start at 3.49 per cent and […]

Question marks-confusion-puzzle

EU changes to KFI will spark consumer confusion

European changes to the Key Facts Illustration document will create “confusion” among borrowers and could prevent them from comparing deals from different lenders, say experts. The mortgage credit directive comes into force on 21 March 2016 and replaces the KFI in the UK with a new European standardised information sheet. The FCA has given lenders […]

India Election Update

What a difference six months makes. Speaking in September last year, we had warned of ‘excessive pessimism’ afflicting the market’s perception of India. Since then, responsible central bank policy from the Reserve Bank of India (RBI), alongside improving global growth, has meant that India’s macro environment is strengthening quickly. The current account deficit has shrunk, inflation is falling and the government has embarked on a heavy dose of much needed fiscal consolidation. As a result, the rupee has been one of the strongest global currencies this year while the market has touched all-time highs, rallying by more than 20 per cent (GBP) since September. This begs the question: are we now in a period of ‘irrational exuberance’? Not yet.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm