UK Labour party manifesto to bring chaos
The UK Labour party manifesto might bring far-reaching economic chaos for Brexit-battered Britain, according to deVere Group’s founder and chief executive, Nigel Green.
He said there were three reasons why Labour’s Marxist manifesto would be the most radical and dangerous in decades.
According to Green, such a scenario would further drive down already stagnate business investment in the UK.
“The mammoth nationalisation programme will leave companies thinking ‘who’s next?’ Plus, the snatching of 10 % of the shares in every big company and a significant increase in trade union power, including a return to collective bargaining, will leave UK and international investors justifiably concerned that their investments will not be safe under Labour,” he said.
Secondly, the implementation of such a scenario would also trigger exodus of some of the most successful and wealthiest individuals.
“This would likely be due to concerns regarding Labour’s stance on inheritance tax, income tax, stamp duty and capital gains tax, potentially even capital controls, and the slashing of pensions tax relief,” Green said.
“And third, a renegotiation of the Brexit deal, which would be put to a second referendum, would create many more months of uncertainty for businesses.”
Green said that Labour’s economic agenda was a ‘risky gamble’, with potentially serious adverse consequences which could be massive.
AUTHOR
Oksana Patron
Recommended for you
Ten Cap has announced it will launch its first active ETF on the ASX later this month, expanding retail access to its flagship Australian equities strategy.
Flows into cash and fixed income ETFs rose by 46 per cent in October with investors particularly demonstrating a preference for Australian credit ETFs as they move away from AT1 bank hybrids.
Having identified Australia as a growth market, J.P. Morgan Asset Management has collaborated with Betashares to offer two multi-asset managed portfolios on its Direct platform, the first funds on the platform from an external manager.
First Sentier has announced it will transition the Stewart Investors investment management responsibilities to its affiliate investment team in light of three senior portfolio manager exits.
