UK election brings few hopes or fears to cautious City of London

UK Labour Party's Approach to Financial Sector:

• The UK financial sector is warming up to Labour's pro-business stance under leader Keir Starmer, aiming to attract private capital for economic growth.
• Labour has shown a shift in mindset towards the City of London, supporting reforms to capital markets and pensions.
• The party backs post-Brexit 'Edinburgh Reforms' and plans to review the pensions and savings industry.
• Speculation exists about potential tax changes on wealth and private equity under Labour.
• Labour aims to engage substantively with the financial industry while maintaining a pro-business stance.

Challenges and Expectations for Labour:

• Labour faces challenges in restoring investor confidence post-Brexit and addressing financial services activities moving to the EU.
• The party aims to implement financial sector reforms effectively to protect the industry's significant contribution to state coffers.
• Rejoining the single market is a red line for Labour to regain direct access to the EU.
• Imminent changes to stock market listings aim to attract big IPOs, potentially including Shein.
• Analysts predict inevitable tax increases to support public services, making the financial sector a possible target.