Labour Government Best for UK Markets, Investors Say

September 20, 2023: According to a new Bloomberg survey, a Labour-led government would be the best result for the UK markets. The survey polled over 500 finance professionals, which found that two-thirds of respondents believe a Labour government would be “most market-friendly.”

This is a significant finding, given that the Conservative Party has long been seen as the natural partner of business and finance. However, the Conservatives’ recent economic policies, including Liz Truss’s disastrous mini-budget, have alienated many investors.

The Bloomberg survey found that investors are particularly concerned about the Conservatives’ record on inflation and the cost of living crisis. They are also worried about the government’s need for a clear plan for economic growth.

In contrast, investors are more confident in Labour’s ability to manage the economy. They believe that a Labour government would be more likely to take steps to reduce inflation, support businesses, and invest in the economy.

The survey’s findings are backed up by other recent research. For example, a study by the Institute for Fiscal Studies found that a Labour government would more likely deliver economic growth than a Conservative government.

The study found that Labour’s policies, such as investing in infrastructure and education, would boost productivity and economic growth. In contrast, the Conservatives’ policies, such as tax cuts for the wealthy, would disproportionately benefit the rich and do little to help the economy grow.

The Bloomberg survey and the IFS study are both significant developments. They suggest that investors increasingly lose confidence in the Conservative government and are more likely to support a Labour government.

Why Investors Prefer Labour

There are several reasons why investors prefer a Labour government. First, Labour has a more credible economic plan than the Conservatives. Labour’s plan is focused on investing in the economy, reducing inflation, and supporting businesses. On the other hand, the Conservatives’ plan is focused on tax cuts for the wealthy, which will do little to help the economy grow.

Second, Labour has a better track record on economic management than the Conservatives. Under Labour, the UK economy grew faster, with lower unemployment than the Conservatives.

Third, Labour is more likely to create a stable political environment. Scandals and divisions have plagued the Conservative Party in recent years. This has made it difficult for the government to decide and implement policy. A Labour government, on the other hand, is more likely to be stable and united.

Conclusion

The Bloomberg survey and the IFS study are both significant developments. They suggest that investors increasingly lose confidence in the Conservative government and are more likely to support a Labour government.

A Labour government would be the best result for the UK markets. Labour has a more credible economic plan, a better track record in financial management, and is more likely to create a stable political environment.