UK General Election - What we know so far

The UK General Election campaign is underway, with major political parties making their case to businesses as well as the wider electorate.

A series of policies have already been announced from most of the parties, which will impact businesses and the economy in Scotland and across the UK.

The general election could lead to significant policy shifts — depending on which party comes to power; affecting taxation, regulation, trade and tariffs, market volatility, and future growth and innovation.

The Chamber has compiled a summary of the policies which we know so far, which have been trailed before the election was announced and since it was announced.

Income Tax

Both Labour and the Conservatives will keep income tax thresholds frozen until 2028 if they win the general election, meaning taxes will rise for many.

Both parties intend to stick with the threshold freezes - amounting to an effective tax rise because of pay inflation - introduced in response to Covid, for the next three years.

Mr Hunt has said the freeze will end after that. Labour has said it will stick to Conservative plans.

The Institute for Fiscal Studies has warned this would bring 4.5 million more people into higher income tax thresholds by 2028.

It comes during the second week of a campaign where the Conservatives, Labour and the Lib Dems have all sparred over taxes.

VAT

Labour, the Conservatives and the Lib Dems have all ruled out raising value added tax (VAT) if they win the general election.

Writing in the Telegraph, Chancellor Jeremy Hunt said the Tories would not raise the main rate of the sales tax during the next Parliament.

He challenged Labour to make the same pledge, claiming the party had been evasive on the issue during recent media interviews.

Shortly afterwards, shadow chancellor Rachel Reeves also ruled out a VAT hike, dismissing a claim she had planned to raise it as "nonsense".

Lib Dem Munira Wilson said her party would not not “look to” raise VAT, income tax or national insurance.

The pledge means Labour and the Tories have now both ruled out increasing VAT, income tax rates and National Insurance - the biggest and most reliable revenue-raisers from personal taxation - in the next Parliament.

GB Energy

Great British Energy would be headquartered in Scotland, where much of the UK's oil and gas and offshore wind industries are based.

Labour would fund the company through a windfall tax on oil and gas firms, which they said would raise £8.3bn over the next five years.

Great British Energy would invest in wind and solar projects, as well as new technologies including floating offshore wind, hydrogen and carbon capture and storage.

But the SNP has said the scheme would use "Scotland's energy wealth" to fund nuclear projects in England and could cost thousands of North Sea jobs.

The Conservatives criticised Labour's moves to stop new oil and gas licences in the North Sea, claiming jobs would be at risk.

The Scottish Greens want Scotland to reduce its reliance on fossils fuels, and have said they will create a fair and sustainable energy system for the future.

The Liberal Democrats have vowed to invest significantly in renewable power so that 80% of the UK’s electricity is generated from renewables by 2030.

Emergency Budget

Scotland's first minister John Swinney has called on Sir Keir Starmer to commit to an emergency budget if Labour win the general election.

During a speech in Glasgow, the SNP leader said there was a broad consensus to "get rid of the Tories", but voiced concerns about who would replace them.

He added Scottish voters were likely to be in "disappointed" in the alternative being offered by the Labour party.

Mr Swinney also reaffirmed his party's commitment to eradicating child poverty and stimulating economic growth.

He was speaking after Labour leader Sir Keir urged Scottish voters to use the election on 4 July to "stop the chaos".

Speaking at a campaign event in Inverclyde, the Labour leader said the election was "chance for change, to end the chaos of division, to turn the page and to rebuild Scotland and rebuild Britain, because we have to stop the chaos".

Mr Swinney called on Labour leader Sir Keir to commit to delivering an emergency budget “very swiftly” should he be elected prime minister.

Policy Roundup

The Chamber has compiled a summary of the policies which we know so far, which have been trailed before the election was announced and since it was announced.

This summary document will be updated regularly as more policies are announced and finalised once all party manifestos have been published.

You access this summary by clicking HERE

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