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Labour's Economic Image: A Shift in Perception

Strategic Insights

— 2 min read

Labour's new economic policy offensive may be gaining traction as the party attempts to shed its traditional "tax and spend" image, according to economic analysts. Strategically, the party is in a better position to present its argument than it has been in the last decade, but some experts warn that the City remains skeptical about Labour's promises. The party's efforts to change its image are being helped by the Conservative Party's own record on tax and spending, which is seen as not much to write home about.

Key Takeaways:

  • Economic analysts believe Labour's new economic policy offensive may be gaining traction, with the party now running neck and neck with the Conservatives in the debate about taxation and spending.
  • Labour's efforts to change its image are being helped by the Conservative Party's own record on tax and spending, which is seen as not much to write home about.
  • Nick Parsons, an economist at the Canadian Imperial Bank of Commerce, estimates that Labour is running neck and neck with the Conservatives in the debate about taxation and spending.
  • David Kern, the chief economist of the National Westminster Bank, believes the City is likely to be open-minded about Labour's economic approach, citing the example of the Socialist party in France.
  • Keynote Speakers

+ Nick Parsons, economist at the Canadian Imperial Bank of Commerce

+ David Kern, chief economist of the National Westminster Bank

+ Kevin Gardiner at Morgan Stanley

+ Neil Mackinnon at Citibank

+ Simon Briscoe of the investment bank SG Warburg

  • The NOP poll for the Independent and BBC TV's Newsnight finds that only a quarter of voters believe Labour could make a better job of running the economy than the Conservatives.

Statistics:

  • Labour is now running neck and neck with the Conservatives in the debate about taxation and spending, according to Nick Parsons.
  • The Socialist party in France has pursued a policy of fiscal prudence for almost 10 years, as cited by David Kern.
  • Only a quarter of voters believe Labour could make a better job of running the economy than the Conservatives, according to the NOP poll.
  • The City is likely to remain "a little bit wary" of Labour's promises, as warned by Kevin Gardiner at Morgan Stanley.
  • Labour's efforts to shed its high tax image have been unsuccessful, with neither party being able to shed this image, according to the NOP poll.

Sources:

  • Analysts quoted in the article, including Nick Parsons, David Kern, Kevin Gardiner, Neil Mackinnon, and Simon Briscoe.
  • The NOP poll for the Independent and BBC TV's Newsnight.

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