CFI.co Blog

11 November 2019

The pound will receive a welcome boost after Nigel Farage’s Brexit Party will not be pitted against Conservatives in almost 320 seats in next month’s election, affirms the boss of one of the world’s largest independent financial organisations.

The upbeat message from Nigel Green, founder and CEO of deVere Group comes as the Brexit Party’s leader Nigel Farage will stand aside in all 317 seats won by the Conservatives in the 2017 general election, fighting only seats held by other parties in the 12 December general election.

Mr Green notes: “Nigel Farage has given the Prime Minister a massive boost in the election as he stands down candidates from his Brexit Party.

“In turn, this will give a welcome boost to the Brexit-battered pound, which has consistently been something of a Brexit bellwether.”

He continues: “The move reduces the likelihood of another hung parliament, which would have led to more parliamentary paralysis and more crippling delays on Brexit.  

“All of this would have generated yet more, intensified uncertainty – something financial markets loathe.  This is why the pound has jumped on the news of the informal Johnson-Farage pact.

“Looking ahead, a Conservative majority would give the government the enhanced ability to move on with the Brexit process. 

“Wealth, jobs and opportunity-generating businesses – both in the UK and internationally – have been crying out for certainty. There is the hope a majority government could lift the fog of Brexit that’s been hampering investment and confidence.

“Should a Conservative majority be returned next month, I believe that the pound will reach $1.35.”

Mr Green goes on to add: “The pound will also be given a boost as the agreement is a serious hammer blow for Jeremy Corbyn’s Labour party.

“His anti-business rhetoric, and high tax and low-profit policies would lead to considerable and sustained selling of the pound.”

Last week, the deVere CEO noted: “I believe we can realistically expect a Corbyn government would trigger an exodus of the country’s most successful and wealthiest individuals who contribute significantly both directly and indirectly to the British economy.”

Nigel Green concludes: “Sterling’s outlook will become increasingly bullish over the next few weeks if the Conservatives continue to do well in the polls in the run-up to the election.”

Could SME growth catalyse an economic surge?

Leading SME investment experts – IW Capital and the UKBAA – discusses the importance of supporting thesmall business economy.

It has been announced today that Britain’s economic growth rate has reached its lowest level in almost a decade, after the ONS announced that year-on-year growth fell to 1%. However, a narrowing trade deficit fueled by growing exports of both goods and services offered encouragement for firms trading outside the UK. What more can be done to ensure that the UK’s globally facing private sector will provide the growht and ambition to thrive and support a growing economy?
 
SMEs make up 99.9% of private sector businesses and so supporting entrepreneurs to start businesses as well as providing vital growth finance is clearly of the utmost importance to the overall health of the UK economy. Small firms also employ over 16million people in the UK and has recently grown at a faster rate than the overall job market.

Luke Davis, CEO of IW Capital, reacts to the news:

“The small business community and its success is as important to the economy as any change in Government in the near future. With an economic contribution of over £2trillion, the success of the UK economy as a whole may in future hinge on the prosperity of SMEs, start-ups and high-growth firms. There are a fantastic range of innovative, growing SMEs that we work with that are likely to drive our private sector forward in the coming years. And it certainly seems that private equity, through routes such as the Enterprise Investment Scheme, as well as other alternative finance options will be key to the business community in the future of a growing economy.

“As entrepreneurs and investors look to capitalise on new opportunities that are bound to exist in the next few years, growth finance will be key to making the most of that. The predicted growth of the economy should be marked as a statement of intent by investors looking to support small businesses that make up our fantastic SME arena and wider private sector economy.”

Jenny Tooth OBE – CEO of the UK Business Angels Association said:

“The SME sector is full of ambitious entrepreneurs looking to ignite economic growth in their respective regions within the UK. With SMEs making up 99.9% of all businesses in the UK, it is essential that they continue to deliver vital growth. With manufacturing output decreasing, we need to make sure that small businesses in other sectors are given the full confidence they need to continue to thrive.  Although we may be going through murky political waters, the business community of the UK must stand together. Investors, whether they be institutional or private, such as angel investing, have never been so important to the sustainability of British SMEs.”

The latest figures on GDP performance show a 1% year on year increase against a forecast of 1.1% and a quarterly increase of 0.3% against a forecast of 0.4%, although business investment is much better than forecast. 

Founder and CEO of REL Capital, Andy Scott, commented:

“The basket of economic performance indicators just published is a mixed bag but when viewed in context to a political dynamic that is more Carry On film than carry on as usual, the economy is holding up ok. GDP, arguably the most important measure of fiscal health, is still hanging on in there in positive territory. Kicking and screaming with it’s head just above the surface, for sure but still breathing nonetheless at a positive 1% up year on year and quarter to quarter.

In particular, construction output is better than the forecasters had expected by some way, as is overall business investment which, whilst flat in real terms, provides a further silver-lining versus expectation. Stiff upper lip and all that.” 

About Andy Scott

Andy Scott is the Maserati 100 winning entrepreneur and owner of nine businesses across the property development, transport and recruitment sectors, with a focus on the catering and construction sectors to name but a few.  

His specialism is buying distressed businesses and turning them around via REL Capital, his holding company. Consequently, his group now has revenues of over £30m annually.

From living on a boat during his uni years, before dropping out and building a successful business empire largely in the hotel trade, Andy lost everything in the 2008 crash but has since fought his way back to be one of the UK’s most successful and resilient businessmen.

Andy is a colourful character. A former nightclub doorman turned yacht owning tycoon, pilot and white-collar boxer who has never forgotten where he came from and continues to operate with the same core business values (and partners) as he did when he first started his journey.

He has appeared on TV and in the press as a business pundit many times including: 

BBC Radio 4’s The Bottom Line 

BBC Business Live

BBC’s CEO Secrets 

More about Andy’s story:  

The Times: When you’re down, I’ll take you out of administration

Evening Standard: Entrepreneurs: After weathering the blows, boxer Andy Scott is raising firms off the canvas

This is Money: ‘I built a property empire with a £5k windfall… and lost it all’

BBC: ‘I got wiped out, but I was determined to make it back’