The Labour Party’s top priority, which has turned the political map red, is to get the economy into the black.
Sir Keir Starmer Government programs may be modest, but the means to achieve them are not.
With the new prime minister Rachel Reeves – Widely expected to become Britain’s first female prime minister – she inherited a difficult economic legacy.
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Stagnant growth, massive debt service payments, and an aging and sick population have left public services inadequate.
If we are to revive the economy without breaking our election pledge not to increase debt or raise taxes, everything depends on achieving growth.
Early Signs in Financial Markets It was positive.
Just two years later Leeds Truss’s While the mini-budget sent the pound crashing and borrowing costs soaring, nothing similarly dramatic happened to Sir Keir.
The pound and 10-year government bonds were stable, while the FTSE 100 index rose, led by housebuilders and lenders, in recognition of Labour’s plan to boost housebuilding.
The FTSE 250, which is made up of more British companies, also rose more than 1% in the first hour, in what may have been a sign of confidence that Labour’s promises of stability and, above all, quality, will be delivered.
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Sir Keir and Mrs Reeves have pledged to boost growth, but to deliver they will need the private sector and investors the UK relies on.
How effective these plans are, and how the new ministers handle the difficult meetings and inevitable unknowns, will shape the administration.
Top of the list are planning reforms aimed at accelerating housing and energy infrastructure, changing rules and reclassifying green belt land to provide housing in the face of inevitable local opposition.
Barriers to offshore wind power, which has been stagnant for a decade under Conservative rule, and solar energy, which is attractive to farmers but not to their neighbours, will be removed, and the national grid will be expanded and upgraded.
This will be good news for companies like Octopus, the UK’s largest retail energy supplier, which has ambitions to become a major power producer if it becomes easier to deliver renewable energy projects.
Founder and Chief Executive Greg Jackson welcomed Labor’s commitment to the sector, saying: Rishi Sunak’s In recent years, there has been growing skepticism about net carbon emissions.
“We hope that with the stability we have now, we can invest in delivering a cheaper, greener electricity system,” he told Sky News.
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Mr. Jackson has specific requirements.
He wants to simplify the plan, because it could take 13 years to connect the current project to the grid. He needs to reform the market and push for electrification so that local residents can benefit from local renewable energy.
The Labour Party has said it will bring forward the phase-out of new petrol and diesel cars to 2030. Prime Minister Sunak’s 2035 Acting.
“The most important message to me is that voters have rejected a return to the world of fossil fuels and oil and gas. Every study shows that voters know that wind and solar are the cheaper, safer, more reliable sources of electricity that we need,” he said.
“The UK can be a really proud leader in this transition, and that would be huge for jobs.
“The countries that move in this direction are the ones that will be the most prosperous, and I sincerely hope that we are there now.”
Oil and Gas Industry Will oppose windfall tax hike and new North Sea permit banElsewhere, Labour’s approach has been widely welcomed by the corporate community. Brexit.
Improving relations with the EU is more of a business concern than a Labour one.
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While the verdict was that a return to the single market and free movement of people as a shortcut to growth was politically and practically impossible in the short term, Sir Keir and his team have been talking about forging friendlier terms with Brussels and improving the terms of the current agreement.
Three years on, the negative impact on UK businesses trading with Europe is clear and businesses large and small are no longer afraid to talk about it.
Socrates Camenon founded his own food processing and distribution company, Golden Delight Foods, in the 1980s and traded regularly. Greece And the same goes for other European countries until Brexit happens.
“It had a devastating impact,” he said.
“We have lost all our exports, we are constantly experiencing shortages, prices are rising, and the administrative and paperwork challenges are beyond imagination.
“The bureaucracy created a nightmare.
“When a businessman makes a mistake, he must change direction.
“We made a mistake. We have to go back and renegotiate.
“We knew the Europeans weren’t going to make it easy for us. They had to set an example for us, to set an example for the other 27 countries.
“But we were the ones who suffered.”
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While reducing international red tape is welcome, Labour’s plans to impose domestic bureaucracy in the form of jobs reform have caused considerable anxiety.
“New Deal for Workers” It has been downgraded Despite the shift from hard-line policies to more consultative ones, this remains a core message Labour presents to voters.
These measures include a commitment to “day one employment rights” including the right to parental leave and sick pay, an end to “exploitative” zero-hours contracts and closing the pay gap for ethnic and disabled people.
As the minimum wage also rises, this will be the potential cost that small and medium-sized businesses will be most sensitive to.
There is also some speculation that Ms. Reeves would flatten the capital gains tax, a move that would end the injustice of those who pay less tax than workers by disguising their income as capital gains taxes, but it could also disincentivize those who take risks to create wealth.
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The economic situation may bring some joy. inflation Stabilized to close to 2% interest rate Next month is likely to be a downturn, with households likely to get some relief and markets expected to see some upturn.
But it is unlikely that Ms Reeves and the potential new business secretary (Jonathan Reynolds has been in the role for more than two years) will have the luxury of taking over.
Your inbox is already full of challenging tasks. Thames Water’s debt crisis The prospect of special administration, de facto nationalization.
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Thames’ annual results are due to be published next Tuesday, and 48 hours later regulator Overwater will announce what all other water companies will be able to charge customers in the future – and steep increases are guaranteed.
If Thames Water remains “uninvestable” as its chief executive puts it, the new government will be forced to create a costly and interminable administration.
How this issue is dealt with, and what the consequences are for Thames shareholders and creditors, will have implications for how the UK is viewed by global investors whom Labour is relying on to fund the energy transition and beyond.
One of the nationalisations Labour has pledged to nationalise is the railways, but it will be phased in as private contracts expire and business units have to sign up for nationalisation. Controversial foreign takeover of Royal Mail parent.
Also, there will be a transaction going on. hi The decision over the future of the Port Talbot factory weighed far more heavily on Labor than on the outgoing administration.
