The financial press is hyping up the new Labour government as the politicians who will finally rejuvenate the British banking industry. The Financial Times recently ran an article that lays out the City of London’s “wish list” for Keir Starmer’s ministry. As the Conservative Party fell in the polls many big hitters in the banking sector were wooed by Labour, with the party going so far as to give Bloomberg an exclusive look at its manifesto after the company donated £150,000 — an action that was denounced as “cash for access” by some in the party’s base. This week’s announcement of a £7.3-billion national wealth fund has only increased the excitement.
Yet there seems to be a wide chasm between the expectations that are being generated in the City by an enthusiastic press and the reality of how Labour will govern. Much of the hope that Starmer and his Chancellor, Rachel Reeves, will improve the business…
