Even city figures who campaigned for the UK to remain inside the bloc suggested a bigger majority would give the Prime Minister the power to override backbenchers pushing for a “hard Brexit”.
Martin Sorrell, the founder of WPP, congratulated Mrs May on opting for a snap election which would cause short term market uncertainty but a strong bargaining position thereafter.
Business leaders are always pleased with political stability and hope the election will provide it
When you think of the difficulty she faces in negotiating with the EU you can see the logic
Martin Sorrell, founder of WPP
He said: “It obviously comes as a surprise given what Mrs May has said about not calling an early election.
“But when you think of the difficulty she faces in negotiating with the EU and the apparent divisions and weakness in the Labour party you can see the logic.
Live from 10 Downing Street: Theresa May calls snap general election Tue, April 18, 2017
Theresa May has made the announcement to call for an early general election to be held on June 8 2017
REUTERS 1 of 8
Britain's Prime Minister Theresa May speaks to the media outside 10 Downing Street, in central London
“A snap election increases uncertainty for businesses but only until June 8 if the polls are to be believed. She has clearly calculated that, with the polls as they are, it is worth sacrificing seven weeks of negotiations with the EU to strengthen her hand.”
The pound surged to its highest level in over two months as the City welcomed the thought of a summer election.
Peter Cruddas, the CMC Markets founder, said: “My feeling is that the City expects she will win with a bigger majority.
“If she does, she will go into Brexit in a stronger position. So if anything this clears up uncertainty, which the City is always in favour of.”
Sir Sorrell believes a weak Labour Party and Brexit talks have caused May to call the election
Get Quotes on Home Insurance
Farming leaders hope the forthcoming election will offer a platform for long-term stability, but warned that the workings of government must not “grind to a halt” in the meantime.
Particularly regarding the timely payment of EU-funded subsidies and environmental grants.
Corbyn has been consistently polling badly and it is unlikely to improve prior to the election
Hedge fund manager Crispin Odey said Mrs May had chosen an opportune moment to go to the polls, as the economy’s resilience since the referendum was unlikely to last until 2020.
He said: “Economically speaking this is probably the best time she can do it but the current environment won’t last and things are bound to get choppier.”
Analysts are confident that costly and “unaffordable” commitments, such as the “triple lock” on pension rises and the barmy guarantee to spend 0.7 per cent of GDP on foreign aid, will be changed if Mrs May gets a handsome Parliamentary majority.