One of the key promises in Labour's manifesto was their ambitious plan for housebuilding. This could have major implications for the construction industry, as the party aims to tip the balance in favour of building and take more control over decision-making.
While this may be good news for the housing crisis, it remains to be seen if there are enough workers in the industry to fulfil these ambitious plans!
But it's not just about housing. Labour's manifesto also promises a tough stance on tax avoidance, with measures such as cracking down on non-doms and increasing staffing at HMRC. However, history has shown that these measures often fall far short of their targets. It remains to be seen how effective these policies will be in bringing in additional revenue.
One of the most talked-about policies in Labour's manifesto is their pledge to create an 'independent tax panel' to advise them on tax issues. This panel includes the former tax director of the Office for Tax Simplification, which was disbanded in 2022.
Many are sceptical of this move, as the previous unit failed to meet its goals. Perhaps a simpler solution would be to remove the numerous 'cliff edges' in the current tax system, which could also bring additional economic benefits.
"As we wait for the new government's first fiscal event this autumn, speculation is rife about what their plans will be!"
One thing is for sure: they will have a tough job ahead of them. With the economy still recovering and the base rate likely to go down, Labour will have to make some difficult decisions. And as we've seen in the past, it's easier to make those decisions at the start of a new Government than towards the end.
But what about your personal finances? Labour's manifesto is surprisingly quiet on this topic, with more focus on what they won't do rather than what they will. Understandably, they want to keep their options open, but it leaves many wondering how their policies will affect them financially.
There will be some obvious changes such as that to Capital Gains Tax and Inheritance Tax, though there is a lot less visibility elsewhere with the likes of ISAs. However, change for the sake of change can cause more unexpected problems further down the line, so the new Chancellor needs to navigate the tax system with care.
One thing is for sure, the first 100 days of the new Labour government will be a time of change and uncertainty. With a new party in power, there will undoubtedly be a period of adjustment for everyone. And with the country still divided on many issues, it will be interesting to see how Labour navigates through these challenges.
In the meantime, it's important to remember that change takes time. The new government will need to carefully consider their policies and make sure they are implemented effectively. As they say, Rome wasn't built in a day.
"So, what could the first 100 days of the new government look like?"
It's hard to say for sure, but one thing is certain: there will be surprises along the way. Whether it's in the form of new policies, unexpected challenges, or unforeseen successes, the first 100 days of the new Labour government will be a time to watch closely.
And who knows, maybe they will exceed our expectations and surprise us all.
Until next time ...
ROGER EDDOWES Business Godparent
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Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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