THE resounding victory for the Conservative Party at the General Election triggered what can only be described as a relief rally for UK equities.

What came from that surprising result actually spawned positive conditions for firms trading in the hospitality, utilities and transport industries, who have since performed strongly as the threat of an interventionist Labour Party subsided in dramatic fashion.

What was left behind was a political map of the UK that seemed to resemble the outline of Maggie Simpson, youngest child of The Simpsons fame, as the top of the UK was turned yellow by the Scottish National Party (SNP) vote, who commanded the majority of the Scottish bias, with 56 seats in the House of Commons.

With the election result now in, the political perspective will likely turn towards the proposed referendum on the UK’s membership of the EU.

Not only that, but with the extraordinary SNP victory in Scotland, the nationalist threat to the future of the UK as a whole will be a key factor at play over the next five years.

With the North-East traditionally being a Labour heartland, pressure on the Conservatives to break the anti-Conservative mentality of the public is key in gaining support over the next five years.

An interesting point to make was in George Osborne’s first post-election speech, in which he outlined his city devolution plan for Northern cities.

In his comments Mr Osbourne labelled Greater Manchester as a ‘blueprint for other Northern large cities’.

Mr Osbourne stressed the Government would deliver the devolution to Scotland and Wales as promised, while going much further to deliver devolution to the cities, giving them the levers to grow their own local economies.

A consequence of this move might be to help the Conservatives to break up the Labour support and re-present the Tories across the North.

As part of the devolution plan, only cities that elect their own mayor would be given control of local transport, housing and skills.

Therefore it is the decision of the North-East councils to elect a mayor in order to gain the right to these local powers.

In light of the decision by the people in Manchester two years go to vote against having a mayor, Mr Osborne is hoping the result of the election and promises made by the Government will change the public perception of electing a local mayor, providing a much needed boost for support to get behind the devolution plans.

One thing for sure is that the North-East will not sit back and accept any unfavourable proposals made by the Government with regards to devolutionary powers, which would result in the North-East becoming a pushover just in an attempt to gain more power.

This view was also echoed by Newcastle City Council’s leader, Nick Forbes, as he portrayed his worries towards the proposals and the role they would play on changing the political landscape of the North-East.

Despite promising the devolution proposals would close the North-South economic gap by more than £18bn, the Chancellor has a while to go in winning back the hearts of the voters who have previously been hit hard by Tory campaigns.

Oliver York is a trainee investment manager at Brewin Dolphin, in Newcastle.

The opinions expressed in this article are not necessarily the views held throughout Brewin Dolphin. No director, representative or employee of Brewin Dolphin accepts liability for any direct or consequential loss arising from the use of this document or its contents. Any tax allowances or thresholds mentioned are based on personal circumstances and current legislation which is subject to change.