Deep Dive: Labour's credibility with financial sector 'hanging by a thread' one year on from elections

City losing faith

The Labour government’s fiscal blunders, coupled with more spending at the cost of hiking taxes for businesses, non-doms and other categories, has failed to incentivise markets one year after the party was swept into power.

After a year of efforts to tackle the country's rising borrowing, Prime Minister Keir Starmer stated on Wednesday (2 July) that he fully supported Chancellor Rachel Reeves despite moments of confusion in parliament earlier that day when he refused to say whether she would be keeping her job or not. Majority of UK financial institutions expect growth over next 12 months This followed a fiasco around the welfare bill, which led the government to shelve £5bn in savings cuts. But investor criticism has mounted in regards to other measures taken by the Treasury, including hikes in taxes on...