The boss of one of Britain’s biggest banks has called for ‘stability’ and ‘certainty’ as Labour’s meltdown over Lord Mandelson leaves the prime minister on the brink.
NatWest chief executive Paul Thwaite made the remarks as the lender announced the £2.7billion takeover of wealth manager Evelyn Partners.
The deal was cast as an opportunity to cash in on a rising appetite for saving and investing – and help deliver growth to the wider economy.
But it comes a day after the resignation of the PM’s adviser Morgan McSweeney raised fears that Sir Keir Starmer could be on the verge of being unseated and replaced with a Labour left-winger.
Asked about the turmoil, Mr Thwaite said: ‘What all businesses need, what consumers need, is stability, certainty and growth.
‘They’re the conditions that create the right environment so that’s what I would be looking for, that’s what any business leader would be looking for.’
Crisis: Morgan McSweeney and Sir Keir Starmer
The comments came as the pound skidded lower against the dollar and the euro and UK government borrowing costs edged higher.
Sterling fell as low as $1.3583 and €1.1454 on Monday morning while the ten-year gilt yield – a key measure of how much it costs the government to borrow – ticked up to 4.55 per cent.
‘International investors just see instability and want a premium,’ said Gordon Shannon, a fund manager at TwentyFour Asset Management.
Analysts said investors are worried that the downfall of Sir Keir could see a more Left-wing prime minister take his place – leading to even higher borrowing and more spending.
‘If we do get a change in the premiership, the replacement is likely to be from the left,’ said Mohit Kumar, chief European economist at Jefferies.
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