Working with the numbers
Just to put on screen (for my benefit more than anything else) the possible options of an outcome to the election in which we gave no party a majority.
Figures to note: Conservatives are probably +1 from Thirsk & Malton (which is still to vote) and though Speaker John Bercow has been included in some Tory numbers, he will (likely) be Speaker and the Tories will finish on 307 (probably). But for the moment, it is 306. Second, Sinn Fein MPs are unlikely to take their 5 seats, which reduces the majority needed from 326 to 324.
Option 1:
Conservative minority government
CON - 306
Opposition:
LAB - 258 LD - 57 DUP - 8
SNP - 6 PLAID - 3 SDLP - 3
GREEEN - 1 ALLIANCE - 1
TOTAL - 337
Option 2:
Conservative-Liberal Democrat coalition government
CON - 306 LD - 57
TOTAL - 363
Opposition:
LAB - 258 DUP - 8
SNP - 6 PLAID - 3 SDLP - 3
GREEEN - 1 ALLIANCE - 1
TOTAL - 280
Option 3:
"Progressive Alliance"/ "Coalition of the Losers" government
LAB - 258 LD - 57
TOTAL - 315
Plus SDLP - 3 who probably take Labour whip
Plus ALLIANCE - 1 who probably take Lib Dem whip
TOTAL - 319
Plus support/ agreement not to vote down government from:
SNP - 6 PLAID - 3 GREEEN - 1
TOTAL - 329
Opposition:
CON - 306 DUP - 8
TOTAL - 314
Option 4:
Saying "bugger this, we can't agree - give us something we can work with" and going to the polls again (which may happen sooner rather than later if any of the above agreements come to fruition).
There are obviously other models (confidence and supply) but they seem to have been ruled out now that Gordon Brown has stepped down and the Tories have offered coalition (and, presumably, Cabinet seats) to the Liberal Democrats.
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