Exit poll projects loss of majority for Conservatives, pound falls

Theresa May’s gamble to call a snap election may not have paid off, as exit polls suggest the Conservatives have lost their parliamentary majority in the General Election.

Exit polls conducted by BBC/ITV/Sky project that the Tories will win 314 seats, 12 short of what’s needed for an overall majority.

Jeremy Corbyn's Labour has been projected to win 266 seats, with the Scottish National Party on 34 and the Liberal Democrats on 14.

Sterling fell immediately against the US dollar after the exit poll was released, as of 22:14 BST it was down 1.78% at $1.2728.

If the result proves to be accurate, May will no doubt face calls to resign after having called the election on the basis of forming a strong and stable government ahead of Brexit negotiations.

The poll represents a major shock, after some experts had predicted a Tory majority of as many as 100 seats.

CMC Markets’ chief market analyst Michael Hewson said: "So much for the opinion polls giving the Conservatives a seven point lead, tonight’s exit poll has seen the pound plunge on the currency markets, as the prospect of a “hung parliament” throws the start of Brexit talks into doubt. If this poll is even close to being accurate it is hard to see how Theresa May can survive as Conservative party leader let alone Prime Minister."

"It is important to remember that in 2015 the exit poll put the Conservatives on 316 seats and they ended up with 331, so it could go either way. Weighing up the current arithmetic, if it stays this way, then neither party is likely to be able to form a stable government, which could well mean another election."