The UK’s current Prime Minister, Rishi Sunak, declared a general election to be held on the 4th of July outside No 10 Downing Street in London. This comes in the face of opinion polls predicting a significant defeat for his ruling party. The decision to move ahead with the poll was made by Mr. Sunak and the UK’s Chancellor, Jeremy Hunt, having realised the futility of waiting until autumn in anticipation of improved economic status, stated party officials.
On Wednesday afternoon, Mr. Sunak informed the British cabinet of his verdict, overlooking the opinion polls that showed a lead of roughly 20 per cent for the Labour Party under Keir Starmer. His intention to call the poll was not made known to most ministers, who were directed to attend the cabinet meeting amidst the escalating election speculation. The UK’s foreign secretary, David Cameron, was even required to hasten his return from Albania.
Rumours around David Miliband possibly serving as the ambassador for a Labour government in Washington have surfaced, with him remaining reticent on the matter. To secure a fifth consecutive general election victory for the Conservatives, Mr. Sunak will need to overcome formidable political obstacles, prolonging their reign which commenced with the coalition government under Cameron in 2010.
High-ranking Tory officials acknowledged Mr. Hunt’s slim chance of having fiscal room to implement tax cuts in the autumn. Meanwhile, expectations for the Bank of England to commence interest rate cuts have been delayed by financial markets. However, Mr. Sunak plans to leverage the UK’s fragile economic rebound. Recent data indicated that the nation has recovered from the technical recession of the previous year with the highest growth rate since 2021.
Inflation has dropped to a “normal” level of 2.3 per cent, down from an 11 per cent high, according to government reports. By proceeding with an early poll, Mr. Sunak aims to put an end to ongoing internal party disputes and recent defections of Tory MPs to Labour. The Labour Party last emerged victorious in a British general election in 2005 under Tony Blair’s leadership, but experienced its worst post-war defeat in 2019 under Jeremy Corbyn’s far-left leadership.
Under the stewardship of centrist ex-lawyer, Mr. Starmer, Labour has been attempting to restore its economic reputation and address issues such as defence, while re-establishing connections with the City of London.
The Labour Party is aiming to capitalise on the Scottish National Party’s difficulties, hoping to pick up some seats in Scotland, while also targeting Conservative regions in England and Wales. Simultaneously, the Tories face a challenge in their southern strongholds from the moderate Liberal Democrats. The newly founded Reform party, led by Nigel Farage, could potentially chip away at the Conservative vote share. However, in the previous 2019 election, the Reform party’s forerunner, the Brexit Party, didn’t contest many constituencies. – All Rights Reserved The Financial Times Limited 2024.