In this column for Financial Planning Today, Dr Matthew Connell, director of policy at the Personal Finance Society, looks at what a new Prime Minister might mean for Financial Planners and how they can meet the challenges of a changing political landscape.
As UK investors adjust to life under the sixth prime minister since January 2019, it is worth asking what might change under a new government?
At the time of writing, new PM Andy Burnham has said there is room for movement on tax but he has also stressed the need for fiscal discipline.
If anything, his example of how tax policy might change – increasing business rates on warehouses to fund tax cuts for pubs and some high-street businesses – shows how little room for manoeuvre an incoming government has on fiscal policy.
On regulation, things may be different. At the end of 2024 Keir Starmer and Rachel Reeves wrote a letter to the FCA and nine other regulators demanding that they remove regulatory barriers to growth. That has had a significant impact on the FCA’s policy agenda.
There is no guarantee that a new administration will be so hostile to regulation. Mr Burnham’s triumph in the Makerfield by-election was wholly down to his ability to take votes from the Lib Dems and the Greens, with Reform and Restore taking an increased share of the vote from the Conservatives.
If Mr Burnham, or any other prime minister, sees this as a blueprint for a general election, they may seek to attract Lib Dem and Green supporters on the left with promises of tougher regulation.
If this does materialise, the best guarantee of stability in the retail investment space is for Financial Planners to continue with the commitment to professionalism that they have embraced for two decades.
• Matthew Connell's column appears in each issue of Financial Planning Today magazine and this column was first published in the July-Aug issue. You can subscribe to the magazine and read comment by leading industry figures by registering for Financial Planning Today website and then checking subscription options in 'My Account.'
Dr Matthew Connell is director of policy and public affairs for the Personal Finance Society.