What does a hung parliament mean for local voluntary, community and faith groups?

NCVO has published the following guidance on the implications of a hung parliament for voluntary, community and faith groups.

What are the implications of a hung Parliament for the voluntary and community sector?

• We have some experience of hung parliaments and minority administrations in this country. Both Scotland and Wales currently operate with minority administrations, as do a number of countries on the continent, and historically it is not unheard of at Westminster. Over the past 120 years, we have had six minority Governments and four periods of coalition rule.
• If an administration can be formed it’s likely that any arrangements could be incredibly insecure. Businesses, local authorities and charities are likely to be unable to take long-term decisions due to the large degree of uncertainty.
• Many people also suggest financial markets will panic if no single party is returned with an overall majority, pushing up interest rates. Others argue that a fiscal consolidation budget approved by more than one of the main parties could, paradoxically, enjoy greater public consent.
• The pace of legislation being passed could slow down significantly – this could be beneficial as it would be more time for scrutiny and influencing.
• However in the short term, the success of the coalition largely rests on degree of agreement between the parties forming the coalition. It is possible that a coalition government could govern for around two years because it is unlikely the political parties will wish to fight another general election so soon after this one – particularly due to financial constraints.
• A hung parliament does not mean that the voluntary and community sector should disengage in the expectation of a second election in the near future. If we want our issues to be counted and taken forward we will quickly have to position ourselves within the political agenda regardless of political persuasion.