The United Kingdom must hold an election in the next few months and the polls are pointing towards an extremely close race.The Conservatives, led by David Cameron, and Labour, led by current Prime Minister Gordon Brown, have started to tighten in the polls as smaller parties have picked up votes in some districts.
All this leaves is uncertainty in who will win the election, and the possibility that no party will win an outright majority, which would lead to a hung parliament.
For a while this was seen as a remote concern.
But there are now 13/8 odds, according to William Hill, that a hung parliament could result.
The possibility is thus very real.
If a hung parliament were to occur, this would put the UK into an uncertain position as either a coalition government would need to be formed, a minority government installed, or a second election held.
A hung parliament for Britain would mean no ‘Austerity Budget,’ more market uncertainty, and a near definite credit downgrade from AAA for the country. The UK would become target number one for speculators as a result, if it isn’t already.
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