LONDON–Only once before, in almost a hundred years, has the UK election had a result like last week’s.
The last time a hung Parliament occurred, political infighting meant that officials failed to quickly tackle soaring inflation and the government crashed within eight months.
This time, Britain’s political parties will be looking to avoid some of the worst issues arising from the events of 1974.
As it becomes more likely that there will be a coalition pact between the Conservatives and the left-leaning Liberal Democrat Party, pundits are already predicting an end to Britain’s electoral system, which favors clear winners and losers.
Britain stands apart from many European countries, which have since the postwar period favored a proportional system in which coalition governments are more common.
However the traditional instability of coalitions is likely to worry markets over the ability of any possible government to begin to reduce the country’s 165 billion pound (US$245 billion) deficit.
Lord Donoghue, who in 1974 was a policy adviser for Harold Wilson, the prime minister of the minority government, has spoken of the uncertainty at the time when there was no majority in Parliament.
“You are aware, as you go through the front door of Number 10 Downing Street every morning, that the government might fall by the evening,” he told the BBC.
On Thursday the Conservative Party won 306 seats, just shy of a majority, but more than Labour who won 258 seats.
The Lib Dems, who won just 57 seats, will be the kingmakers in any coalition government. The Conservative and Lib Dem parties met several times over the weekend to thrash out some kind of coalition deal, with senior government figures pressing them to finalise a deal within days to avoid instability in the financial markets.
Analysts have drawn frequent parallels with the 1974 hung Parliament. Back then, as now, the Conservatives won more votes, yet failed to secure a majority.
However coalition talks between Edward Heath’s Conservatives and the Liberals failed, and Harold Wilson, the Labour leader, governed the country with a minority government.
Back then, although 27 items of legislation were passed in the eight months before a fresh election was called, none of them were targeted toward reducing the soaring inflation, which was on its way to a rate of 27 percent.
For many, given the current economic climate, the results of last week’s general election is simply a case of history repeating itself.
“Companies across the U.K. have expressed significant concerns about how a hung Parliament could affect the decisive action needed to cut the deficit and improve the business environment,” said Adam Marshall, director of Policy at the British Chambers of Commerce.
“The electorate has spoken—and opted for a hung parliament. But the business community has also spoken—and expects the parties to put political horse-trading to one side and put the U.K. economy at the heart of their thinking.”
The last time a hung Parliament occurred, political infighting meant that officials failed to quickly tackle soaring inflation and the government crashed within eight months.
This time, Britain’s political parties will be looking to avoid some of the worst issues arising from the events of 1974.
As it becomes more likely that there will be a coalition pact between the Conservatives and the left-leaning Liberal Democrat Party, pundits are already predicting an end to Britain’s electoral system, which favors clear winners and losers.
Britain stands apart from many European countries, which have since the postwar period favored a proportional system in which coalition governments are more common.
However the traditional instability of coalitions is likely to worry markets over the ability of any possible government to begin to reduce the country’s 165 billion pound (US$245 billion) deficit.
Lord Donoghue, who in 1974 was a policy adviser for Harold Wilson, the prime minister of the minority government, has spoken of the uncertainty at the time when there was no majority in Parliament.
“You are aware, as you go through the front door of Number 10 Downing Street every morning, that the government might fall by the evening,” he told the BBC.
On Thursday the Conservative Party won 306 seats, just shy of a majority, but more than Labour who won 258 seats.
The Lib Dems, who won just 57 seats, will be the kingmakers in any coalition government. The Conservative and Lib Dem parties met several times over the weekend to thrash out some kind of coalition deal, with senior government figures pressing them to finalise a deal within days to avoid instability in the financial markets.
Analysts have drawn frequent parallels with the 1974 hung Parliament. Back then, as now, the Conservatives won more votes, yet failed to secure a majority.
However coalition talks between Edward Heath’s Conservatives and the Liberals failed, and Harold Wilson, the Labour leader, governed the country with a minority government.
Back then, although 27 items of legislation were passed in the eight months before a fresh election was called, none of them were targeted toward reducing the soaring inflation, which was on its way to a rate of 27 percent.
For many, given the current economic climate, the results of last week’s general election is simply a case of history repeating itself.
“Companies across the U.K. have expressed significant concerns about how a hung Parliament could affect the decisive action needed to cut the deficit and improve the business environment,” said Adam Marshall, director of Policy at the British Chambers of Commerce.
“The electorate has spoken—and opted for a hung parliament. But the business community has also spoken—and expects the parties to put political horse-trading to one side and put the U.K. economy at the heart of their thinking.”
In Europe, coalition building is simply an everyday part of political life, but it does not necessarily have an unblemished record.
Just last month, Belgium’s coalition government collapsed—the latest chapter in an ongoing impasse between the country’s Francophone and Flemish political parties.
Similarly, in February the Dutch coalition government was forced to resign following disagreements between Christian Democrat and the Labour members over the deployment of troops in Afghanistan.
The country will go to the polls again on June 6, but lengthy negotiations are again expected, casting doubt on the country’s plans to dig itself out of debt.
One country that does have a incredibly fragmented political landscape is Spain. There, the ruling Socialist Party control only 169 out of 350 seats, and have to rely on the on-off support of small parties such as the Basque nationalist PNV.
The weakness of the country’s leadership has led many to doubt whether the country would be able to push through a package of reform as thorough-going as that imposed in Greece—which has a majority electoral system.
Following last week’s election, there is the increasing likelihood that Britain could be moving toward a European political system.
In order to secure the support of the Lib Dems in a coalition government, the two main parties may need need to offer concessions on the issue of electoral reform.
The Liberals, who have been in the political wilderness since their creation nearly 30 years ago, believe they would secure greater representation from a proportional electoral system.
If granted, the concession would mean that coalition building would increasingly become a feature of British political life.
The concern is that the three main parties each have different visions for the economy. Both Labour and Liberals to an extent believe in investing in the country in order to secure jobs, while the Conservatives believe in cuts in order to make savings.
Lord Norton, an expert on Parliament, said that contentious laws were often difficult to pass in a minority government.
“It’s clearly constrained—it can’t do what a government with an overall majority can do,” he told the BBC.
“It’s far more fraught, a far more hand to mouth existence. You can govern but you can’t govern proactively,” he added.
Just last month, Belgium’s coalition government collapsed—the latest chapter in an ongoing impasse between the country’s Francophone and Flemish political parties.
Similarly, in February the Dutch coalition government was forced to resign following disagreements between Christian Democrat and the Labour members over the deployment of troops in Afghanistan.
The country will go to the polls again on June 6, but lengthy negotiations are again expected, casting doubt on the country’s plans to dig itself out of debt.
One country that does have a incredibly fragmented political landscape is Spain. There, the ruling Socialist Party control only 169 out of 350 seats, and have to rely on the on-off support of small parties such as the Basque nationalist PNV.
The weakness of the country’s leadership has led many to doubt whether the country would be able to push through a package of reform as thorough-going as that imposed in Greece—which has a majority electoral system.
Following last week’s election, there is the increasing likelihood that Britain could be moving toward a European political system.
In order to secure the support of the Lib Dems in a coalition government, the two main parties may need need to offer concessions on the issue of electoral reform.
The Liberals, who have been in the political wilderness since their creation nearly 30 years ago, believe they would secure greater representation from a proportional electoral system.
If granted, the concession would mean that coalition building would increasingly become a feature of British political life.
The concern is that the three main parties each have different visions for the economy. Both Labour and Liberals to an extent believe in investing in the country in order to secure jobs, while the Conservatives believe in cuts in order to make savings.
Lord Norton, an expert on Parliament, said that contentious laws were often difficult to pass in a minority government.
“It’s clearly constrained—it can’t do what a government with an overall majority can do,” he told the BBC.
“It’s far more fraught, a far more hand to mouth existence. You can govern but you can’t govern proactively,” he added.
