Britain’s economy is in a bad place. Removing Boris Johnson might help

Britain’s economy is in a bad place. Removing Boris Johnson might help

London (CNN Business) – Investors don’t usually like political uncertainty. But in the United Kingdom, a shake-up in government could be exactly what the economy needs.

British Prime Minister Boris Johnson will face a vote of confidence on Monday triggered by lawmakers in his own party. They’re angered by government parties that broke coronavirus rules, his handling of a deteriorating cost-of-living crisis and a dearth of clear policy goals.

If 180 Conservative Party lawmakers — or a simple majority — vote against Johnson, he will cease to be leader of the governing party and will be removed from office, less than three years after scoring a landslide win in a general election. If Johnson wins the vote, he will remain leader of the party and prime minister, although with his authority damaged.

Markets could initially be rattled if Johnson loses, given the instability and jockeying to replace him that would follow. But some analysts believe it could ultimately be a positive development for UK investments, since it would clear the way for someone with a bolder vision to take the reins as economic activity stalls.

The world’s fifth-biggest economy ground to a halt in February and started shrinking in March. The British pound has