Good morning.
As a little kid in Scotland, I remember my dad told me the ruling Labour Party was bad for business. Barely 30, he was an entrepreneur trying to support three kids in a land of strikes, power cuts, inflation and high taxes. We moved to Canada before the Conservative Margaret Thatcher became Britain’s prime minister in 1979.
Labour’s back! With yesterday’s U.K. election, Keir Starmer is set to become Britain’s first Labour prime minister in 14 years, promising to be both “pro-business and pro-worker.” (Click here for the Labour Party Manifesto—a term that some might associate with communism, until they see the accompanying photo of Starmer.)
Will this left-leaning centrist party be better for business than the right-leaning centrist party it’s displaced? Many suspect so, considering the volatility, years of wage stagnation and sluggish growth under the Tories. After all, the Conservatives instigated Brexit, brought us leaders who flouted COVID protocols or were outlasted by a head of lettuce. Prime Minister Rishi Sunak could have waited until 2025 to call an election, but he decided to call it early.
I asked two pundits I respect to weigh in on the impact of Labour’s win. Ian Bremmer, founder and president of Eurasia Group, called it “a much-needed positive story,” adding that “a Labour government is going to be good for the United Kingdom’s standing in the world and its economic outlook.” Moreover, a victory for Starmer would “allow him to deliver political stability and policy certainty—something the U.K. has been sorely missing for much of the last decade. Moreover, I expect Starmer to implement a coherent economic policy and a major reset with the European Union—both of which will improve the outlook for domestic and international investors.”
I also asked Azeem Azhar to weigh in. Along with being founder of Exponential View, the British thinker co-chairs the Global Futures Council on Complex Risk for the World Economic Forum. In his view, last night’s Labour win will prompt “businesses of all types, but particularly startups and climate tech firms, to breathe a sigh of relief. The promise of stable, disciplined government will unlock investment. Bosses who have been keeping their powder dry and investors worried about political volatility will be reassured. I expect an increase in investment and a growing belief in Britain’s tech and climate tech sectors.”
Welcome your thoughts, and more news below.
Diane Brady
diane.brady@fortune.com
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