UK General Election 2024: What Labour’s Victory Means for Your Finances

Sir Keir Starmer has been appointed prime minister, after emerging victorious in the 2024 UK General Election.

Regardless of your political stance, Labour’s win is certainly set to bring about many (potentially welcome) changes to the way the country is run – and in this, our latest article here on the Knowledge Hub of our site, we focus on what the election result could mean for your finances. Read on…

Let’s first look at Labour’s five goals:

  • Kickstart economic growth
  • Make Britain a clean energy superpower
  • Take back our streets
  • Break down barriers to opportunity
  • Build an NHS fit for the future.

What does the new government mean for your money?

The cost-of-living crisis was a key issue for many voters. Labour’s first mission then? Deliver economic stability.

The party promises, says Sky News, ‘to follow strict fiscal rules the government already has in place – only borrowing to invest rather than using it on day-to-day spending’.

Plans to keep mortgages low

Sir Keir lays out his manifesto here, suggesting that via ‘tough spending rules’, he hopes to ‘grow our economy and keep taxes, inflation and mortgages as low as possible’.

Cutting NHS waiting times

Those who have resorted to skipping the NHS waiting list and instead pay private healthcare fees will could well feel hopeful that Sir Keir plans to cut NHS waiting times. His aim? Create 40,000 more appointments each week, during evenings and weekends. Labour plans to pay for this by ‘cracking down on tax avoidance and non-dom loopholes’.

Point three on the manifesto is to launch a new Border Security Command, with hundreds of new specialist investigators. Sir Keir also plans to use counter-terror powers to smash criminal boat gangs.

Pledging to scrap the government’s Rwanda scheme ‘straight away’, says Sir Keir in this piece for the BBC ‘would free up £75m in the first year of a Labour government’ to hire hundreds of extra investigators and ‘intelligence agents’’.

‘Cut bills for good’

Point four of the manifesto focuses on the plan to set up ‘Great British Energy’ – a publicly-owned clean power company. By doing so, Sir Keir hopes to cut bills for good while ‘boosting energy security paid for by a windfall tax on oil and gas giants’.

In the recent Money Saving Expert Leaders’ Debate 2024 on YouTube, Sir Keir said: "For those struggling to make ends meet, we’ll stop the scandal of expensive pre-payment meters being forced on vulnerable people, and we’ll work with the energy regulator to reduce the standing charges that hit poorer households. And we'll launch a Warm Homes Plan – spending an additional £6.6 billion to upgrade Britain's homes, cut energy bills and boost jobs across the country."

‘Putting power back in renters’ hands’…and a ‘comprehensive mortgage guarantee scheme’ for first-time buyers’

Of course, these changes won’t happen overnight, but Sir Keir promises a wealth of support for both renters facing extortionate price hikes, and those struggling to get on the property ladder.

Speaking to Money Saving Expert, he says he aims to give first-time buyers 'first dibs' on new developments in their communities, with a comprehensive mortgage guarantee scheme’ for those who struggle to save for a large deposit.

Sir Keir plans to also ‘put the power back in tenants’ hands, allowing them to challenge ‘unreasonable rent hikes’.

‘Security and dignity in retirement’

Big plans are also afoot to ensure people can look forward to ‘security and dignity in retirement’. In the Money Saving Expert video recording, Sir Keir says: "Labour will maintain the triple lock on pensions and increase the state pension each year in line with inflation, average earnings, or by 2.5%, whichever is higher.”

Authored by Katie Watts – Money Saving Expert’s Campaigns and Policy Lead – this piece offers a thorough breakdown of what you can expect to happen to your finances now Labour’s in power.

The piece covers all this (in much more detail) and more:

  • Renters
  • Energy bills
  • Unpaid carers
  • Women Against State Pension Inequality (WASPI) women
  • Mortgages, including the outlook for first-time buyers.

Want to start a fresh savings pot, in light of the changes the new government might bring to your finances. View our range of financial products* and do not hesitate to contact our team if you have any questions.

Until next time…

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