London 4 June 2024: As the UK heads to the polls today, financial markets are holding steady as forecasts predict a new Labour government. The long-anticipated shift seems imminent, with Labour maintaining a consistent 20-point lead in key polls since October 2022.
Payments firm, Caxton, analyst David Stritch says that Labour’s proposed economic policies are fiscally orthodox and align closely with those of the Conservatives. "The fundamental UK outlook is left largely unchanged," Strict explains. "We do not anticipate a Brexit-style depreciation in Sterling and could even see a modest appreciation as the uncertainty is removed."
Despite the market's current stability, Caxton remains vigilant. The firm’s FX desk for both personal international payments and business FX needs will operate through the night, ready to assist clients in capitalising on potential Sterling gains or mitigating any losses from minor fluctuations.
For non-domiciled individuals, the upcoming changes in tax rules, effective from April 2025, signify a notable shift in the UK’s tax landscape.
Alana Parsons, Caxton’s Chief Operating Officer, said, “While these changes introduce new challenges, they also present opportunities for strategic planning. Jurisdictions like Gibraltar offer appealing alternatives for those looking to optimise their tax position while maintaining a high quality of life. We are working closely with our partners and clients to help navigate these changes effectively.”
As the UK stands on the brink of potential political change, the fintech sector continues to adapt, demonstrating resilience and strategic foresight in the face of evolving economic policies.
ENDS
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