Two-Thirds of Wealthy UK Labour Voters Regret Their Decision
Prime Minister Keir Starmer has lost the support of wealthy voters who helped his Labour Party secure a historic majority in last year's UK general election, according to a new survey that lays bare the seven month-old government's waning popularity.
Some 66% of people who voted Labour last July now regret that decision, according to a survey of 2,000 Britons conducted in January by the wealth management firm Saltus. Respondents cited the government's increase in employment taxes, as well as decisions to scrap the winter fuel allowance for most pensioners and sales tax on private school fees. Those surveyed had investable assets — such as cash, shares and bonds, but not property — worth at least £250,000 ($310,000).
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At last the ‘Iron Chancellor' has turned, but the cost could be fatal
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'Overall, the amount raised looks tiny relative to the political damage which the whole episode has caused to the Government.' But it's not just political damage – in the immediate wake of the news, gilt yields rose. Certainly, some element of this is simply factoring in the lower revenues the Government can now expect, but more critically, it is shifting perceptions. The long shadow of Liz Truss's mini-Budget continues to haunt Labour, and they are likely to be undone by their own political spin. Reeves et al oversimplified what happened in September 2022 and tied their hands in the process. Changing policy is a natural part of government and waiting for the next Budget isn't always possible, but when you tell the nation (and markets) that it's fiscally irresponsible to do so, you cannot be surprised when eyebrows are raised. Reeves's Spring Statement already effectively broke her promise of one major fiscal event per year – yesterday's revelation has broken most of the others. 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