8th May 2015
Star fund manager Neil Woodford has welcomed the election result but warned that a majority Tory government will not be a quick fix for the economy.
Woodford, head of investment at Woodford Investment Management, said that the result was a surprise considering the ‘talk of hung parliaments, horse trading and coalitions’ pre-election.
Stating that his opinions were not politically motivated, he said ‘the result of the election looks much better than expected’ as it ‘removes the risk of [a] prolonged period of political uncertainty that we had expected to prevail’.
However, he said a Conservative government doesn’t not remove all political uncertainty as the landslide victory for the SNP in Scotland puts the viability of the union in the spotlight again.
There is also concern about the EU referendum that is expected in 2017.
Woodford said the outlook for the UK economy is not improved greatly by the election.
‘The UK economic outlook looks somewhat subdued over the next five years, regardless of the result,’ he said. ‘A less conclusive result would clearly have been worse for the economy because of the associated political uncertainty, but our assessment of the UK economy suggests we should expect modest growth at best over the next few years.’
He added that the election does put a question mark over the ‘fairness of a political system which can deliver an outcome in which the number of seats in Westminster does not correlate with a party’s share of the national vote’.