There is a French saying “Plus ca change, plus c’est la meme chose” meaning, the more things change, the more they stay the same.
Its interesting to apply this to a change that is about to come about, if, as expected, the Labour Party form the next government from the 5th of July.
The present Shadow Chancellor, Rachael Reeves, has indicated that there will be no immediate post-election budget, which means no immediate tax changes.
Both sides (Conservative and Labour) have underlined that they will not add to UK debt by increasing government spending. Instead, they have asserted they will cover any expenditure with tax funding.
But don’t hold your breath. Once the new government is safely ensconced at Downing Street who knows what may be in store for us.
One thing is certain, we may have to rethink any financial planning that we have implemented thus far if we have a Labour administration. Their longer term focus is likely to be tackling income inequalities and levelling up. We shall see…
Meantime, expect no immediate, drastic changes in economic policy. But expect movement next year as the new government becomes familiar with facts and figures. We may see evidence short-term that policy may appear to stay the same, but it’s unlikely that this will continue long-term.
