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Digital Subscriptions > The Hedge Fund Journal > Issue 115 - July | August 2016 > Britain Faces Post-Referendum Commotion

Britain Faces Post-Referendum Commotion

Still too many unanswered questions in UK politics

With Theresa May’s move into 10 Downing Street, at least the immediate political vacuum at the very top of British politics has been filled. While investors will have welcomed this clarification of political leadership, the inconvenient truth is that policy uncertainty remains huge, both on Brexit and the domestic economy. A closer look at developments in British politics reveals political risk is unlikely to abate from its currently elevated levels anytime soon.

May’s initial comments made it very clear: this is her government, and no continuation of the past. The sacking of seven of the most senior ministers including Chancellor George Osborne and Justice Secretary Michael Gove followed suit. The new PM has single-handedly gotten rid of the ‘Notting Hill set’ of senior ministers close to Cameron and Osborne, fired almost all of the Number Ten political advisers appointed by Cameron, and all of the advisers in the Treasury under Osborne.

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