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UK Elections 2024: Labour's landslide victory

UK Elections 2024: Labour's landslide victory

Keir Starmer’s Labour Party wins by majority in the UK general election that took place yesterday.

The vote effectively kicked out Conservative incumbent Prime Minister Rishi Sunak in a historic victory, marking the worst defeat the Tories have seen since Tony Blair was elected into office.

In the final results of the vote, Labour Party won 211 seats, taking the majority with 412 seats, and the Conservatives lost a staggering 250 seats, leaving them with 120. The Liberal Democrats have also won votes, now holding 71 seats.

Other parties that have won seats this election are the Green Party, Reform UK, and Plaid Cymru, each acquiring 4 seats. The Scottish National Party lost 38 seats, leaving them 9, Sinn Fein kept their 7 seats, and the Democratic Unionist Party has 5 seats.

What do the results mean for fintech?

A Labour majority indicates that there will be further support for regulation and growth in the fintech space, promising to accelerate the approval process. However, whether they will fast-track the introduction of digital assets, AI, and smart data regulation remains to be seen.

Additionally, the influx of inflation has contributed to an unstable economy and soaring prices, and the UK public are awaiting a plan from the new government.

In the Finextra article published earlier this week on party manifestos, it was outlined that Labour will support start-ups, open banking, and open finance, and work with the industry to bolster growth, but had not pledged funding to R&D as the Tories and Lib Dems did. Labour does plan to introduce a strategy to combat fraud and cybercriminals, and has pledged to create a National Data Library for AI research, open 350 shared banking hubs, and expand the British Business Bank.

In regards to sustainability, Labour has outlined a plan to decarbonise the UK electricity grid by 2030, put a stop to river pollution, and make the UK a “green finance capital of the world” by ensuring all financial organisations are aligned in the transition plans of the Paris Agreement. Labour has also pledged to establish a National Wealth Fund to fund green initiatives and work towards net zero goals.

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