Britain’s new Labour government has pledged immediate action to grow the economy after clinching a landslide election victory to oust the Conservatives, but its task could be hampered by strained state finances following huge Covid expenditures.
It also sank the chaotic premiership of Liz Truss, who lasted just 49 days before she was replaced by Rishi Sunak.Britain’s economy is currently on a more stable footing after exiting a mild recession and as inflation returns to normal. Starmer has ruled out returning Britain to the European single market, customs union, or bringing back free movement of EU nationals.“I want investors to look at Britain and say it is a safe haven in a turbulent world, a place where I can invest with confidence in a world where perhaps other countries are tilting to more populist politics,” Labour finance spokesperson Rachel Reeves said ahead of Thursday’s UK vote.
Ahead of the election, Labour increasingly won support of company bosses and key UK publications — including the Financial Times — who believe the party can successfully manage the economy.The Confederation of British Industry declared that “now is the moment to get behind growth”, while manufacturers’ organisation MakeUK said Labour “faced an “urgent need to kick start the UK’s anaemic growth levels of recent years and boost investment in our infrastructure”.