Published On: Fri, Oct 25th, 2019

General election: Corbyn’s election cowardliness will pummel pound – financial expert | City & Business | Finance

The Labour Party leader is urging his MPs to abstain from Monday’s parliamentary vote on a snap election on December 12, which was called by Boris Johnson on Thursday.

The Prime Minister said if the House of Commons does agree to an election in six-weeks-time, he will afford them more time to discuss his Brexit bill.

Under the Fixed Term Parliaments Act, the Prime Minister requires two-thirds of all 650 MPs to support him but if Labour – which holds 245 seats in the House of Commons – abstains from the vote again, it would destroy his hopes of forcing through an election.

Last month, Labour abstained from two separate votes after motions were tabled by Mr Johnson, insisting they want a no deal Brexit taken off the table before supporting a national poll.

Since the EU referendum in June 2016, the pound has plummeted against major global currencies, falling nearly €8 to today’s opening price of €1.1565.

On Monday, the pound soared to €1.1626 – it’s highest value since May 7 – as hopes of Brexit happening on October 31 increased,

But it has steadily fallen over the past four days as uncertainty continues to hit financial markets.

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General election: Jeremy Corbyn has been warned his election refusal will damage the pound (Image: EXPRESS)

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General election: The Labour leader is refusing to back an early poll until a no deal Brexit has been taken off the table (Image: PA)

Nigel Green, chief executive and founder of independent financial firm deVere Group, warned: “Whether it is Boris Johnson’s preferred date of 12 December or a few weeks later, a general election is looming on the horizon for the UK.

“An election in itself will create further woes for the already Brexit-battered British pound as they always fuel uncertainty.

“We immediately saw this in action on Thursday when sterling – the worst-performing major currency of the G10 – fell from its recent multi-month highs and took a turn lower following the announcement Boris Johnson will seek a general election before Christmas.

“Whilst the beleaguered pound does have much of the Brexit shenanigans already priced-in, Jeremy Corbyn’s decision to instruct Labour MPs to abstain or vote against Monday’s general election vote will ramp up the uncertainty further – thereby extending the pound’s losses.”

READ MORE: Brexit LIVE: EU leaders FURIOUS with Macron for blocking delay

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General election: Boris Johnson has been pushing for a snap election (Image: GETTY)

Mr Green also warned the continued Brexit deadlock is causing the UK economy to “haemorrhage investment, confidence and opportunity”.

He accused Mr Corbyn of abusing the “democratic system” for refusing to back the vote for an early election, and will ultimately cost him when Britain does make it to the polls.

The financial expert warned: “It’s an abuse of the democratic system for the opposition to not allow a general election to take place to break the deadlock.

“Many voters will believe that the reason why Jeremy Corbyn is pursuing this path is that despite the most chaotic political turmoil this country has faced in generations led by the Tories, he is still unlikely to win a general election.

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General election: Jeremy Corbyn is urging his MPs to again abstain from Monday’s vote (Image: REUTERS)

boris johnson

General election: The Prime Minister is furious at Jeremy Corbyn’s election refusal (Image: GETTY)

“Mr Corbyn and others need to stop playing games.

“The pound and the UK economy are losing their edge in a competitive global economy with the grinding Brexit politicking.”

Earlier this week, Mr Green warned a victory for Mr Corbyn in the next general election could lead to a chaotic downfall of British finances and blow a massive hole in the economy.

He claimed the policies from the party’s leader are “anti-business, low-profit, high-tax” that could damage long-term growth and lead to a “significant sell-ff of the pound”.

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General election: Jeremy Corbyn has the most unpopular approach to Brexit, according to a poll (Image: EXPRESS)

The deVere Group founder said: “There are two key reasons why you should election-proof your finances.

“First, Labour leader and leftist firebrand Jeremy Corbyn might become the UK’s next Prime Minister.

“His anti-business, low-profit, high-tax policies – including a possible wealth tax – can be expected to spook the financial markets, damage long-term sustainable growth of the British economy, put more pressure on UK financial assets, and lead to a significant sell-off of the pound.”

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