Citi predicts Theresa May likely to lose leadership contest, Britain to see fresh election within a year

A video grab from footage broadcast by the UK Parliament's Parliamentary Recording Unit (PRU) shows Britain's Prime Minister Theresa May as she speaks in the House of Commons in London on June 26, 2017.
A video grab from footage broadcast by the UK Parliament's Parliamentary Recording Unit (PRU) shows Britain's Prime Minister Theresa May as she speaks in the House of Commons in London on June 26, 2017.PHOTO: AFP/PRU

LONDON (Reuters) - Prime Minister Theresa May's government is not sustainable beyond a few months and there is likely to be another British national election within the next year, Citi said in a research note.

"We continue to think that her premiership is not sustainable beyond a few months, perhaps a year at most, and will be under pressure in the face of contentious parliamentary votes from the very beginning," Citi said.

"Our base case remains that we will have a Conservative leadership contest followed by a new general election within the next 12 months," the bank said.