Economic Commentary [December 2019]

The securing of a majority by the Conservatives in last week’s election has been interpreted – at least initially – by financial markets as a moment of clarity, with both sterling and the FTSE rising. Here in Scotland, the success of the Scottish National Party has ensured that the prospects of a second independence referendum remain front and centre in the debate. The outcome makes certain that the UK is on course to leave the EU on 31st January. However, leaving the EU next month only marks one step on the road to understanding the long-term future direction of the UK economy. The tricky business of a trade negotiation now gets underway.