London (AFP) – With a UK general election looming, the country’s main opposition Labour party is starting to persuade business and financial sector leaders that it can be trusted to grow the economy.
Prime Minister Rishi Sunak’s Conservative party trails badly behind Labour in polls before a national vote expected this year, owing to rapidly losing its reputation for economic competence.
Labour on Wednesday launched what it described as “ambitious proposals to drive competitiveness, streamline regulations and unlock billions of pounds of growth in financial services”.
Keir Starmer’s party was boosted this week by news that the chairman of British supermarket Iceland was switching his support to Labour from the Conservatives.
Richard Walker, a former Tory donor, wrote in the left-leaning Guardian newspaper that Labour was “the right choice for everyone in business who wants to see this country grow and prosper”.
UK business remains hampered by high inflation and stagnant growth.
Companies are also counting the cost of Brexit.
Following Britain’s departure from the European Union, the country on Wednesday finally rolled out post-Brexit border checks on food, plant and animal products imported from the neighbouring bloc, fanning fears of fresh price hikes.
On financial services, Labour said it planned on “building a more collaborative relationship with the EU”.
– ‘Championing financial sector’ –
Labour’s plans Wednesday focused on financial services, which have also taken a knock following Brexit, with companies picking the likes of Wall Street over London for new listings.
Online betting giant Flutter this week took the first step to switch its main listing from the British capital to New York.
“The financial services industry is one of Britain’s greatest assets, supporting millions of jobs and billions of pounds of investment to our shores,” Labour’s spokesperson on finance, Rachel Reeves, said Wednesday.
Confident of replacing finance minister Jeremy Hunt, she added: “The next Labour government will unashamedly champion the UK’s financial services sector.We will work in partnership with business to kick down the barriers to growth, spur on investment and showcase Britain’s standing as a world leader in the industry.”
Barclays bank chair Nigel Higgins said Labour’s plan recognised that “a vibrant and dynamic financial services sector is crucial for long-term economic growth” as well “the importance of international competitiveness”.
Miles Celic, CEO of financial services lobby group TheCityUK, added that Labour had “set out a forward-thinking plan for financial services with a clear focus on innovation, modernising the regulatory landscape, driving more investment, and unlocking growth in the wider economy”.
