Shadow Chancellor, Rachel Reeves during a visit to Morrisons in Swindon where she and the Labour Party leader Sir Keir Starmer discussed the cost of living with employee Labour winning a “supermajority” at the election may unsettle the financial markets and would require Sir Keir Starmer or Rachel Reeves to make a statement within hours of their victory pledging economic stability, experts have said.
There is around a one in 20 chance of the Conservatives being the largest party or “anywhere near power”, Wilkes added. Wilkes highlighted the panic on worldwide stock markets after Donald Trump won a shock victory in the 2016 presidential election, which was then calmed after the president-elect made a conciliatory victory speech within hours of the result.
The markets will also be building into expectations which taxes Labour might increase beyond its “triple lock” pledge not to raise income tax, national insurance or VAT, Horn added. “For the last year or so, Labour has been clear that Rachel Reeves is driving a policy of affordability and economic stability, and individual MPs are expected to toe that party line.”