Sad days for the British center-right and center-left

This is what neoliberalism looks like:

Both of the main political parties — the center-left Labour and the center-right Conservatives — have been busy promising to support financial services in the run-up to the vote.

The incumbent Tory Party has set a series of industry-backed reforms in motion since Brexit. And the opposition Labour — on course for power if polls are correct — has pledged to stick with them if it wins the election.

It’s a dream scenario for finance. “It's a very different approach and a very different sense of how the industry is seen. It’s seen as a potential enabler, a solution to problems such as low growth, rather than being on the receiving end of banker bashing,” said TheCityUK’s Celic. (1)

British elections are on July 4.

The Tories are trying to stay more Margret Thatcher-ish than the Labour Party:

[Tory Prime Minister] Rishi Sunak has presented a £17bn tax giveaway as the centrepiece of the Conservative manifesto, an offer that was immediately condemned for being “implausible” and mainly benefiting wealthier voters.

The policy programme set out by the prime minister, seen by many Tory MPs as probably the party’s last big chance to win over voters, contained few big surprises and was centred on cuts to national insurance and stamp duty, higher thresholds for child benefit and help for pensioners.

Launching the manifesto at Silverstone racetrack in Northamptonshire, Sunak accepted he faced an uphill task in convincing voters, not least after his early departure from D-day commemorations last week.

“I’m not blind to the fact that people are frustrated with our party and frustrated with me,” the prime minister said. But in cutting taxes, he added, “we are the party of Margaret Thatcher and Nigel Lawson, a party, unlike Labour, that believes in sound money”. [my emphasis] (2)

But Labour’s lead candidate Keir Starmer isn’t exactly a bold reformer.

His cautious pragmatism extends to foreign policy too, where — unlike his left-wing predecessor — Starmer often mirrors the government line. Not always; Starmer would like a closer relationship with the EU. But he has supported strikes on Yemen and Iranian drones that were fired towards Israel, and — having called remarks by Donald Trump “repugnant” in 2016 — now says a Labour government will work with whoever wins the White House in November. 

Starmer’s hawkish foreign policy stance has caused him problems with his own base. A poorly-worded response after Hamas’ October 7 attacks, in which he suggested Israel had the right to withhold power and water in Gaza, badly damaged relations with Muslim and pro-Palestinian voters. He later clarified his remarks and has since called for a sustainable ceasefire. [my emphasis] (3)

Notes:

(1) Brenton, Hannah (2024):Bankers already won the UK election. Politico EU 06/10/2024. <https://www.politico.eu/article/uk-election-city-london-banker-financial-housepower-global-economy-crisis-brexit-tory-labour/> (Accessed : 2024-11-06).

(2) Walker, Peter & Crerar, Pippa (2024): ‘Cosplaying Liz Truss’: Rishi Sunak condemned for £17bn tax giveaway. The Guardian 06/11/2024. <https://www.theguardian.com/politics/article/2024/jun/11/rishi-sunak-condemned-17bn-tax-giveaway-tory-manifesto> (Accessed: 2024-11-06).

(3) Bloom, Dan (2024): Meet Keir Starmer: Britain’s next prime minister? Politico EU 05/23/2024. <https://www.politico.eu/article/keir-starmer-labour-party-prime-minister-british-elections/> (Accessed : 2024-11-06).