What Labour's Policies Mean for Investors

At the moment there is optimism in the UK stock market and the general consensus seems to be in favour of a change of government. In this video, we’ll break down the effects of the Labour Party’s policies on UK investments both in the equity and bond markets. We’ll also dig into which sectors of the stock market could benefit and what tax challenges investors might face.

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Timestamps
00:00 Introduction: Optimism in the UK Stock Market
00:29 Labour Party's Fiscal Plan
03:43 Impact on the UK Equity Market
07:04 Sector-Specific Benefits
11:13 Challenges for the Stock Market
14:00 Positives for the Bond Market
18:16 Tax Implications for Investors
20:48 Conclusion and Final Thoughts

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DISCLAIMER
All information is given for educational purposes and is not financial advice. Ramin does not provide recommendations and is not responsible for investment actions taken by viewers. Figures that are quoted refer to the past and past performance is not a reliable indicator of future results.

[gringadoor]

If they touch ISAs in a negative way they are out in 5 years.

[chrisbarlow]

The best break down of the Labour polilcies that I have seen, this should be on the BBC or Sky. Two reasons why I liked it, first, I understood it, second it appeared without bias. As others have commented I would like to see one for Tories, Reform, Lib dem regardless of a perception that they will win or not. Just to highlight strengths and weaknesses. Nice video.

[FixUp.LookSharp]

Fantastic Ramin. That can't have been easy to research and prepare. One of your best ever vids I think

[Brigadoon]

Re-Pensions / SIPPS, noticeable absence on keeping the 25% tax free allowance on withdrawal, on keeping the existing 40% tax relief on contributions and no commitment to not reducing contribution limits or introducing some hybrid system that limits contributions eligible for tax relief. No commitment to exclude SIPP funds from inheritance tax. Pensions are a soft target for politicians of all persuasions, I'm old enough to remember Gordon Browns tax

[markturner]

So if they fail to gain growth by revenue, they'd likely increase taxes before increased bond issuance because bond issuance is essentially increasing government debt.

[laralsofia]

Thank you so much for this video! You explain really well what we need to know about Labour Manifesto.

[stevantunic]

In 97 first Labour budget they hammered pensions and slashed tax free savings allowances, not mentioned in the manifesto. I was 27 at the time and it's added years to my retirement date. My experience of Labour as a saver is prepare for an absolute shellacking on all fronts, don't be naive and think this time it will be different.

[peterjones]

More important than anything you have mentioned is UK National debt now 100% of GDP. Labour are not saying they will pay it down. It Dwarfs Brexit as an issue. Our debt repayments and the QE undertaken plus the BofE idiocy on keeping interest rates high and borrowing costly feeds inflation and keeps cost of living high. Growth will not come in these conditions.

[royed]

Shell are already actively looking at a NYSE listing will follow

[Dosh__]

Did anyone know that Starmer's father was a tool maker and his mother was a nurse?

[davidcollier]

Very nicely done, I thought the review of their budget ins and outs was very interesting and it was an objective appraisal throughout. Many thanks for posting it, I feel better informed for watching it.

[theenglandyoda]

Please can you look at the other party's plans? Reform, Tory, LibDem etc...

I'm not sure how Labour are going to achieve growth by carrying on the same policies as are in place at the moment. Especially with tax levels at all time highs.

[MagicNash]

"Closing tax loopholes" is BS, as one reporter pointed out, all big party manifestos have that, its basicly a way to add free UNFUNDED spending plans into the same document. Vote for me, I will close tax loopholes for 3 trillions, I wont tell you how, I have no history of doing any of that on that scale - or any scale for that matter.

[johnnyworzel]

Come the Autumn “something” will happen and the whole situation will change. The manifesto will be overtaken by events (whatever they will be) and they’ll be forced to do whatever is necessary ie whatever they like. Call me paranoid, but not until Christmas.

[petermorris]

Labour in London have a war on motorists and Labour in Wales also have a war on motorists. Therefore, I think that any investment (Property, shares etc) that favours public transport, or properties with good public transport links, will do well going forwards.

[Jeffybonbon]

well this is what i am predicting CGT and Dividend Tax to the same rates of Income tax a cap of 100k on isa investments and pension tax relief 20% and i think CGT on private homes over 1 million pounds I hope I am wrong

[Brigadoon]

No chance on 300K new dwellings unless tents are included, there isn't sufficient skilled construction labour in the UK now to build at that rate. Construction labour shortages are already hampering our current build rate. Blaming land-banking in itself, as all political parties do, is bogeyman politics, the problems are far more nuanced and deep rooted. If there aren't enough bricklayers, electricians, plumbers, plasterers, dry-liners, carpenters, joiners etc etc, at an affordable price, the rest is just noise.

[martinsingfield]

Whilst economic growth in the UK slowed after 2008, it did so in every G7 country. Indeed, the UK out has grown every G7 economy except the USA and Canada since 2010, and every G7 country except the USA and Germany in terms of real GDP per capita. I also think that the graph showing the slowdown in investment overstates the position. The trend from 2010 to 2015 reflects a rebound after the financial crisis, and not the the long term trend. In terms of investment as a percentage of GDP, investment has returned to the pre-referendum level.

[teddyb]

The point regarding an extra 1.5m houses over five years is a mute one as you state, as:
a) others have tried without success, and
b) the incentives for housebuilders i.e. land banking enabling them to maximize supply/demand [and so prices], HTB and Stamp duty 'freezes' increasing values means there IS no incentive to reach these targets.
Having tried this 'Carrot' approach a number of times [and failed miserably] any new government of serious need to 'get the stick out'. Whether these choose to do this [and so spoil their chances of post-government directorships and/or party donations] is open to question, and will demonstrate if their manifesto promise is a genuine one.

[rogerq]

Really brilliant content! Great breakdown.