Prime Minister Boris Johnson seems unlikely to quit following today’s Prime Minister's Questions as he revealed 'Plan B' restrictions, including safety measures to encouraging working from home and wearing masks in certain situations, will be ditched from 27 January.
Historically, markets have favoured Conservative governments, and with the next election two years from now, it is doubtful a change in the party in charge is at the forefront of the minds of investors and companies.
Even if there were to be a sudden change, Russ Mould, investment director at AJ Bell, believes it will have little to no impact on the market, with the Tories' increasingly interventionist approach making the two main parties almost indistinguishable in business policy.
More immediately pressing and a serious possibility, however, is a new leader at Number 10.
Johnson remains under intense pressure following several ‘work’ gatherings held at Downing Street during the first lockdown, with rumours of a growing number of Tory backbenchers considering putting forward a vote of no confidence.
With that being said, should there be a new man or woman in the hot seat, whether it be Rishi Sunak, Dominic Raab or any other Tory member, it is doubtful to have any immediate impact on the market.
“You still must be mindful of what the economic backdrop is at the time as well as the policies implemented, and lot of the market movements will come down to what is important at the time and right now the key issues are inflation, deflation, interest rates and so on,” Mould said.
“I'm sure it won't make too much of a difference at all who is at Number 10 Downing Street.”
Something that may give Johnson some temporary money in the bank, however, was the announcement that Plan B restrictions would be scrapped from next Thursday, which included vaccine passports, work from home guidance and face masks in public spaces.
That news was seemingly popular for a host of businesses and industries that were hit when they were first introduced just before Christmas.
Shares in Cineworld Group PLC (LSE:CINE), for one crept up 2.29% to 41p in afternoon trading, a possible indication that investors expect an increase in sales following today’s announcement.
National Express Group PLC (LSE:NEX) shares also rose, up 3% to 249p, alongside Hollywood Bowl Group PLC (LSE:BOWL) which was up 4%.
Retailers Marks and Spencer Group PLC (LSE:MKS) and WH Smith PLC (LSE:SMWH) were up 2.34% 217p and 6.67% to 1549p respectively, with the removal of restrictions likely to lead to increased footfall in city centres and high streets.