There are always exceptions but a general rule is the more wealth you have the more conservative you tend to be in politics. That does not means as your wealth increases you automatically vote for the more right wing parties, it just means the center right parties tend to understand and address your issues more closely. You have accumulated some wealth or likely own property including stocks and bonds so have a vested interest to maintain and grow asset values. A political party that tends to happen, you tend to like.

In the UK, the Labour Party tends to represent those who work for someone else and want to accumulate assets but feel they need government help to do so. In a polarized elections, the Labour Party tends to say tax the wealthy (what is defined as wealthy tends to be lower than people in the tax bracket, who say they are just getting by). The Labour Party in the UK says some elements should be rights and if it is a right, the government should be doing something about it. If housing is a right, that means the government should be a developer for people. The party running against Labour tends to believe more in individual abilities to rise to the occasion.

In an article by Sinead Cruise and Huw Jones of Reuters, the Labour Party in the UK defeated the Conservative Party and business is okay with it. Part of the reason is the new Finance Minister is slated to be Rachel Reeves formerly an economist at the Bank of England and has backed policies that will help the financial community be protected or will do no harm in the city’s global competitiveness.

Before Brexit, the financial community in England was the number one financial services to both Europe and the global. After Brexit, firms have moved outside England and Amsterdam in Holland has over London to become Europe’s top share trading venue. This dominance by the Amsterdam Stock Exchange started in 2020.

A study by PwC for the City of London and TheCityUK published in May estimated the total tax contribution of the financial and related professional services was $192.5 billion or 12.3% of the total UK tax receipts.

It is pretty simple really, business wants certainty, said Naresh Aggarwal, associate policy and technical director of the Association of Corporate Treasurers.

Linking to dividend paying stocks, often politicians have a view at least during the elections which says about things in the past but does not always reflect reality. It is reasonably easy for opposition parties to pick on the high growth areas of the economy, at one time it was the financial services where incomes and living were above normal. There will always be some of that, but things tend to move in cycles and reality does not always reflect myth. When politicians get into power, they have to face reality and often they moderate and then business can deal with them. It is good when parties send signals to business that certainty will be the dominate feature.

There are more questions than answers, till the next time – to raising questions.