Pound surges as Conservatives sweep to election win

The Tories powered to victory with 362 seats, giving the party the largest majority it has had since Margaret Thatcher’s reign.

Sterling jumped 2.2% to $1.34 – its highest point since May 2018 – on hopes that a majority government would finally remove the uncertainty surrounding Brexit.

Prime Minister Boris Johnson, who retained his seat in Uxbridge with 25,351 votes, said the Conservative government “has been given a powerful new mandate, to get Brexit done”.

Johnson has vowed to take the UK out of the EU by January 31, 2020.

Labour leader Jeremy Corbyn said he will not lead his party at the next election following the defeat.

He described the result as “very disappointing” and said he would stay on as leader during a “process of reflection”. 

The Liberal Democrats will also be looking for a new leader after Jo Swinson lost her East Dumbartonshire seat to the Scottish National Party. 

Following the Tory landslide, Capital Economics chief UK economist Paul Dales said: “Passing a Brexit divorce deal in the coming weeks would remove any risk of a no deal Brexit on 31 January, reduce the immediate uncertainty and lift business investment at least a bit.

“And in a Budget in February, the Conservatives would probably give the economy an extra kick by raising public investment by up to £20bn.”

Jonathan Geldart, director general of the Institute of Directors, said: “After years of parliamentary chaos, directors want to see a government that is clear-sighted about the challenges facing businesses, and ambitious, but realistic, in its response. British companies have been resilient amid the confusion, but they are eager for some clarity now.

“Business leaders’ thoughts will immediately be turning to Brexit. For directors, ‘get Brexit done’ will only have meaning once the details of our long-term future relationship with the EU are clear, they need a framework to plan for the future from.

“The prime minister must resist the urge for arbitrary negotiating deadlines, and should commit to a proper adjustment period that starts when businesses know the full detail of what changes they may be facing. Our members have made clear that the content and shape of any new deal are much more important than simply the speed in getting there.”