Business leaders have called on MPs to move on from infighting after Theresa May survived a vote of no confidence in her leadership, while urging the government to make progress on Brexit to avoid a no-deal scenario.
The pound eased off early gains after the prime minister clung on in the no-confidence vote with 200 votes in her favour and 117 against.
Sterling was up more than 1.3% against the dollar at $1.264, although it dropped to about $1.260 after the result – about 1% up on the day.
The pound had earlier rallied amid speculation that May could survive the vote, lowering the chances of a hard-Brexit leader winning control of the ruling Conservative party.
Business leaders, however, condemned the fresh turmoil in Westminster, saying the latest uncertainty was bad for the economy.
Carolyn Fairbairn, director general of the CBI, said: “This vote was a chaotic detour that needs to be put to good use. Politicians must finally stop the endless infighting of the past 30 months and come together to secure a workable Brexit deal. Companies and the country have had enough of chaos.”
Adam Marshall, the director general of the British Chambers of Commerce, said: “At one of the most pivotal moments for the UK economy in decades, it is unacceptable that Westminster politicians have chosen to focus on themselves, rather than on the needs of the country.
“Our firms are worried, investors around the world are baffled and disappointed, and markets are showing serious strain as this political saga goes on and on.”
Stephen Martin, the director general of the Institute of Directors, also criticised MPs. Martin said: “The last thing businesses needed today was even more uncertainty – and yet politics has managed to deliver on that once again.
“Many business leaders, along with the rest of the country, will be tearing their hair out at the state of Westminster politics at the moment. We are edging closer and closer to no deal as a result of constant can-kicking and internal domestic political strife.”
May’s victory means she now has 12 months where the party cannot trigger another contest, meaning the vote against her could have the unintended consequence of bolstering her position and bringing with it some degree of economic stability.
