What UK election outcome means for Brexit and the economy

A short look at how the Conservatives and Labour are different in their macroeconomic perspectives and approach

As TechSci Research strives to keep you up to date with a series of analytical articles on the UK General Elections and different sectors that form the fabric of the UK Economy sees its culmination as the final count unravels, here is a broader look at what their specific economic ideologies espouse and how they will reshape Britain’s future in their own ways:

Taxation: Conservatives believe in lowering taxes as much as possible. They are against raising Value Added Tax (VAT) rates and aim to reduce corporate tax level to 17% by 2020. They also aim to provide a social security net over the ‘gig economy’, the emerging class of people such as coders, Uber drivers etc. who are essentially considered ‘semi-employed’. Labour, on the other hand, wishes to raise taxes on the top 5% to help fund British public services as well as raising corporate tax rate. Labour is also promising a 20:1 salary cap; the top earner in any company will get paid only up to 20 times as much as the lowest employee is paid.

Infrastructure and Social Security: Labour wants to renationalise the banks and rail service as well as a publicly owned energy and water companies. The Royal Mail is also said to be renationalised as per the Labour manifesto. Furthermore, they aim to go ‘zero carbon’ and reduce pollution levels across Britain adding more renewables to the energy mix. Conservatives. on the other hand. are more for a decentralized system relative to Labour and want to maintain more of the status quo. They have promised during these general elections, to focus on planting 12 million trees as well as supporting comprehensive waste disposal systems and a better road network. Both parties have promised to improve the ailing British National Health Service (NHS) and reducing unemployment. Both parties also plan on improving the infrastructure and build more where necessary.

Industry: Conservatives aim to fiercely protect their and improve their North Sea energy assets, and introduce fracking, expecting them to create more jobs, both skilled and unskilled, as well as make Britain’s energy infrastructure secure. They aim to retain as much talent as possible post-Brexit. Labour, while they promise to protect the North Sea assets but they propose to increase employment through green technology and green energy jobs. They will push legislature to completely ban fracking, and smoothen restrictions towards digital jobs. As per Labour, sustainable technologies are the way towards raising employment rates as well as transforming Britain, whereas Conservatives promise the same through lower corporate tax. Both parties promise to negotiate the best deal possible through the Brexit negotiations, and keep as many jobs as possible.

These are some of the different ways that the two major parties differ with regards to overarching economic factors and their different plans to revitalize the British economy in their own specific ways.

 

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