Labour Talking Down Economy Sees £666 Million Withdrawn From UK-Focused Funds
Labour’s ceaseless Britain-bashing and their relentless “doom and gloom” script have pushed the panic button on the economy. Talk of a “painful” budget has businesses running for cover. A staggering 71% surge in mergers and acquisitions—business owners are frantically selling up ahead of Labour’s capital gains tax raid. Start-ups are being strangled by Labour’s crackdown on innovation tax credits. And now 9,500 millionaires set to flee the UK in 2024…
The drip-feed of pessimism from Labour’s economic doomsayers is doing its damage. Investors are voting with their feet, with £666 million drained from UK-focused funds in September alone. Equity income funds shed £416 million. Edward Glyn, head of global markets at Calastone, said:
“The new government’s rather pessimistic commentary about the UK economy appears to have put a stop to the nascent revival in interest in domestic equities that we first detected in trading data in July. UK-focused funds seem to be off the menu for investors for the time being.”
Rachel Reeves might be betting on pulling an “Osborne”—permanently saddling the opposition with the tag of economic incompetence — though it’s backfiring fast. Labour can’t just blame the other lot without bringing solutions to the table. The clever-sounding spin from Labourites—set low expectations of a tax-heavy budget only to swoop in with a “not quite as bad” reveal—has completely flopped. Businesses are bolting. Labour’s doom-loop of self-fulfilling prophecies is driving the very decline they keep talking about…
