From Morningstar: 2024-05-24 07:14:00

Rishi Sunak has called a general election, but the ruling Conservative party is behind in polls. Experts don’t expect the election to affect markets much. Labour’s manifesto will be closely examined for economic policies, but the UK’s economy is still struggling post-pandemic and dealing with Brexit fallout.

Sunak highlights economic progress under the Conservatives. However, there are concerns about tax burden, strained public services, and high mortgage rates. Labour’s response includes plans to cap corporation tax, regulate bankers’ bonuses, and support economic growth, with shadow chancellor Rachel Reeves leading the charge.

Labour plans to set up renewable energy firm Great British Energy with contributions from oil and gas firms. Ed Miliband, focusing on energy and climate change, plays a key role. Simplifying pensions and financial products is a priority. High government debt limits tax cuts, and health service funding remains a critical issue for the next government.

Labour aims to prioritize economic growth to avoid tough tax and spending decisions. Reeves stresses the importance of stimulating the economy. A cautious approach may be taken initially, with potential for more radical changes later on. The British public is accustomed to high taxes and government intervention, which could influence Labour’s policy decisions.



Read more at Morningstar: What Would a Labour Government do to Taxes and Finance?