In a drama-free election, Prime Minister Keir Starmer’s landslide victory in the UK has reassured investors of the country’s political and policy stability. Following Liz Truss’ reckless fiscal plan that almost triggered a financial crisis, Starmer’s responsible government is restoring confidence in the economy. Meanwhile, France faces a hung parliament with potential prolonged political uncertainty, making post-Brexit Britain more attractive to investors.
Amid global political turbulence, the US and France add to Britain’s appeal post-election. However, Labour’s victory masks underlying economic issues exacerbated by Brexit. Starmer’s cautious approach, while avoiding Brexit re-negotiations, may hinder economic recovery. Investors should remain cautious of Britain’s economic performance despite its relative political stability.
Nicholas Spiro is a partner at Lauressa Advisory