What could a Labour victory mean for the UK economy?
While Labour missed out on a majority vote in the last General Election, there is still conversation circulating about what a victory for the party would have meant for the UK economy. Read on to find out what a win for left-wing voters could have lead to…
The tax system
Labour’s manifesto was quite heavily focused on tax and a victory for the party would have meant that what they consider to be a fairer tax system would be implemented. As a result, there would have been no increase in tax for anyone earning less than £80,000 a year while the top 5% of earners would have been asked to contribute more money to help fund public services. Corporation tax would also have increased from 19 to 26 percent.
More investment in the UK infrastructure
The Labour Party believes that UK citizens have been held back due to a lack of investment in the UK’s infrastructure and had plans to address this problem by pumping a staggering £250 billion into upgrading the economy over 10 years in the form of a National Transformation Fund. This money would have been put towards completing the HS2 high-speed rail from London through Birmingham to Leeds and Manchester. This would make commuting easier, which could, in turn, have a positive impact on the UK economy.
The way the financial system operates could have been transformed
Taking a nod from successful German and Nordic countries, Labour had a plan to establish a National Investment Bank that would introduce private capital finance and deliver £250 billion of lending power. The National Investment Bank would have filled gaps in lending by private banks, particularly to small businesses and by providing long-term R&D investments.
More people would have a say in the economy
While Britain is a long-established democracy, it’s hard to deny that often, financial decisions that involve our economy are made by a small minority of people. If Labour had achieved a victory in last General Election, the distribution of ownership of our economy would have shifted. The size of the co-operative sector would have been doubled, and a ‘right to own’ scheme would have been introduced that would have meant employees would be the buyer of first refusal when the company they work for went up for sale.