Allister Heath

Britain on the brink

It is a calculation that should fill all of us with an immense sense of dread: there is now a 72.2 percent chance of a hung parliament. Or so says Michael Saunders, Citigroup’s chief European economist and the one man in the City everybody listens to when it comes to the interaction between parliamentary politics and the financial markets.

His model, which incorporates the standard data about the Westminster first-past-the post system, and into which he has fed all of the latest polls, also suggests that there is just a 6.2 percent chance of strong Tory majority, a 19.1 percent chance of a weak one and 2.5 percent chance of a Labour majority. Given the terrible state of our public finances, and Britain’s desperate need for a strong government with a clear commitment to fiscal reform, all of this is little short of disastrous, as I argue in today’s cover story in the magazine.

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