PM Rishi Sunak announced UK General Election 2024 on 4July-How does it imapct the Stock Market Investor?
British Prime Minister Rishi Sunak called for a UK General election2024 in the UK on July 4, following a cabinet meeting. Standing outside his Downing Street office, he declared, “Now is the moment for Britain to choose its future.” Sunak highlighted key achievements during his time in government, including the introduction of the furlough scheme that supported businesses during the Covid-19 pandemic.
The United Kingdom is constitutionally obligated to hold a national election by January 2025, and Prime Minister Sunak has consistently stated it will occur in the latter half of 2024. Earlier today, in response to a lawmaker’s inquiry about a possible summer vote, Sunak teased, “Spoiler alert: There will be a general election in the second half of this year.”
UK General Election 2024 Announcement
Sunak’s decision to hold an early summer election diverges from the usual timing, as elections are not legally required until January 2025. The Conservative Party, led by Sunak, aims to secure a fifth consecutive term in office. Meanwhile, Sir Keir Starmer’s Labour Party is poised to challenge them, with favorable opinion poll ratings
How does the Prime Minister call a UK General Election2024
The PM said that earlier on Wednesday he had formally asked the King to “dissolve” Parliament – the official term for closing it ahead of an election. This will happen on Thursday 30 May. At the point of dissolution, MPs lose their status, and have to campaign for re-election if they wish to carry on. Government also enters a pre-election period – previously known as “purdah” – which restricts ministerial and departmental activity during the campaign. More than 100 MPs have said they will stand down at the next election.
- Parliamentary Timetable: Parliament must be dissolved 25 working days before the election date. By choosing July 4, PM ensures that next week’s planned recess will be canceled, allowing a “wash-up week” for completing remaining business before dissolution.
- School Holidays: School holidays in Scotland (starting July 5) and England (for many private schools) influenced the election date. Holding it earlier risked voters being away during holidays, affecting postal ballots.
- Economic Data and Migration: Sunak’s decision also considers economic data and the issue of illegal migration. He aims to address these challenges during the campaign.
- Historical Lessons: Sunak’s audacity in calling an early election may sway voters’ focus away from internal party divisions.
UK Prime Minister Rishi Sunak History
Rishi Sunak (born May 12, 1980, Southampton, England) is a British politician and financier who became the leader of the Conservative Party and prime minster of the United Kingdom in October 2022. Previously he served as chancellor of the Exchequer (2020–22). Mr Sunak became prime minister on 25 October 2022 when he succeeded Liz Truss, who took over from Boris Johnson.
Challanges for PM in General Election24 first times face the Voters as Bristish PM
Rishi Sunak, the British Prime Minister, faces voters for the first time since taking office. His decision to call a snap general election for July 4, 2024, after a cabinet meeting, has set the stage for a six-week campaign. Sunak’s Conservative government is expected to face challenges, and the election outcome could significantly impact the UK’s political landscape.
Key Point of Election
- Background: Sunak’s decision comes after a fall in inflation rates, providing the backdrop for the announcement made outside Downing Street in the rain.
- Campaign: The election fires the starting gun on a six-week campaign, with Sunak’s Conservative government facing challenges. Sunak hopes to rally Conservatives around the common cause of retaining power .
- Key Issues: Sunak’s efforts to tackle illegal migration and the state of the economy will likely be central to his campaign. Labour aims to highlight soaring prices, healthcare concerns, and recent sleaze scandals
- Economy and Inflation: The economy and rising inflation rates are major concerns. While Prime Minister Sunak touts economic progress, households continue to grapple with cost-of-living challenges .
- Immigration: The handling of immigration, particularly the controversial Rwanda plan, will be a focal point. Labour proposes alternative approaches to address asylum seeker arrivals.
- Housing Crisis: After 14 years in power, homeownership stagnates, and the UK faces a housing shortage. Solving the housing crisis is a critical issue.
- NHS and Healthcare: The state of the National Health Service (NHS) remains a priority. Both parties will address healthcare policies.
Effect of General Election 2024 on volatile Stock Market/Business
- Market Volatility: In the run-up to the election, there’s heightened uncertainty about which party will win. This uncertainty can lead to significant market volatility as investors speculate on sectors and companies that may be impacted by election results.
- Currency Movement: The British Pound (GBP) tends to be receptive to political events. An election could cause movement in the value of the pound. Volatility is typically bad for the GBP, but it could regain strength depending on the election outcome. Investors might consider diversifying into assets like Gold or Bitcoin during this period.
- FTSE 250: Historically, the FTSE 250 has shown positive performance in the run-up to UK elections. According to research, it delivered an average return of 11% in the 6 months before past elections. Consider monitoring this index during election season.
Conclusion
The upcoming UK general election 2024 is likely to cause volatility in the stock market. Investors should expect uncertainty, potential currency movements, and consider monitoring the FTSE 250 index. Remember to consult with a financial advisor for personalized advice.
