UK: Labour government on the way

Labour Party’s victories in last week’s local elections across England and Wales, involving local councils, mayors etc., signalled that it is heading for government later this year, with a convincing majority.

Why it matters: Labour has said that it will bring forward legislation within its first 100 days in government to enact a package of reforms it has dubbed 'A New Deal for Workers.'

The big picture: One thing is certain. A Labour government will not seek to rejoin the EU, nor seek membership of the Customs Union or the Single Market. Labour will try to negotiate some marginal improvements in the Trade and Cooperation Agreement (TCA) between the UK and the EU, but UK labor regulations may diverge further from EU labour laws.

The bottom line: Specifics of Labour's election manifesto will guide policy decisions, but businesses should prepare for potential shifts in U.K. labour regulations in early 2025.