Hung parliament in the 1992 UK election

I'm unsure the UUP would pull the plug on confidence and supply arrangements because of Black Wednesday. As we are currently seeing with the DUP, propping up the government gives them a huge amount of influence that they will be extremely reluctant to throw away.

But if they did, it's fairly clear that John Smith would become the next Labour PM, given that he had already been in placed for two months when Black Wednesday happened.

Doubtful. The economic fallout wouldn't really be much worse than OTL.

Couldn't a hung parliament convince Neil Kinnock not to resign?
 
Couldn't a hung parliament convince Neil Kinnock not to resign?
Unlikely. Given the economic and political crises that had taken place over the previous five years, most people would expect a Labour victory to be all but assured, and so the knives would be out for Kinnock in any scenario where he fails to win power. IOTL, some on the Labour right were so badly scarred by 1992 that they struggled to tolerate Smith, who was generally seen as one of their own. Kinnock staying on would seem like even more of a 'one more heave' strategy that Blair and Brown criticised in the 1992-94 period.
 
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