What do the political manifestos mean?
Peter McGahan
Monday 24th June, 2024.
GIVEN that a manifesto is a plan for a party’s economic and social policy, it’s all you have outside of the emotional, high octane, divisive language used to coerce your vote.
Each time I see the best manifesto, no-one votes for it, instead opting for the emotional rhetoric. That’s ‘cos it works.
Understanding how we react emotionally, whether it is financial decisions, voting or just climbing onto that table to dance at the end of the evening, is vital. Each election programme is the same. Heightened emotion, not logic. It’s easy, quick and successful.
An Amygdala Hijack (a highly emotional, irrational response) occurs when the amygdala, the brain's emotional centre, responds to stress, fear, threats, or even intense positive arousal, by bypassing the rational brain (neocortex), leading to an immediate, overwhelming emotional reaction. This in turn impairs rational thinking. It happens to us all.
Add to this our confirmation bias, and driving votes is a doddle. Confirmation bias is where: ‘reds or blues have always been like that’; ‘my family always vote like that’ or ‘they are tree huggers’. Hey presto, we have a set of entrenched beliefs. We then look only for what supports those beliefs. This plays straight into the hands of those coercing you.
My take on the current political manifestos (Conservative, Labour, Green, Lib Dems, Reform UK) is based on one thought (with no bias because I’ve never voted): ‘If you want the best for society, which option is best?’
The Conservative Party proposes tax cuts for businesses and individuals to stimulate growth. It plans to reduce public spending to manage the deficit. Its growth strategy emphasises deregulation and infrastructure investment. This would boost business investment and growth but could increase inequality and potential underfund public services, already failing miserably.
The Labour Party wants higher taxes on the wealthy and corporations to fund public services. Start by taxing the wealthy and corporations in the first place? Labour will significantly increase public investment in healthcare, education, and green energy. It wants to increase growth by stimulating demand through
increased public spending and addressing inequality. This would enhance social equity and long-term growth but could increase public debt and deter some investments from the wealthy or overseas companies.
The Green Party proposes higher taxes on polluters and new wealth taxes alongside a universal basic income, while introducing large investments in renewable energy and public transport with a focus on sustainability and green technology.
This should create long-term environmental benefits and social equity but there are high initial costs and potential (read definite) resistance to wealth redistribution.
The Liberal Democrats want a fairer tax system with support for small businesses. They want a balanced investment in education, healthcare, and housing and their growth strategy is to mix public investment with fiscal responsibility and climate action.
This will promote sustainable and inclusive growth with moderate fiscal risk.
Reform UK want to simplify the tax system (no detail) and lower taxes. It also wants to significantly cut public spending. The emphasis is on free-market principles and deregulation. Yes, it would reduce government intervention and public spending but risks (read…it will) harming essential services while increasing inequality.
For me, green energy is essential to reduce reliance on those energy organisations charging horrific prices, leaving mass inflation and financial hardship in their wake. These organisations relentlessly lobby government but, if we are to survive, we need a more sustainable form of energy provision, one that doesn’t have someone else’s hand in our pockets. In March 2023, the UK’s annual energy price inflation was over 40 per cent. Higher oil prices increased transportation costs thus increasing food prices. By March 2023, food and non-alcoholic beverage prices had risen sharply, contributing to an annual inflation rate of 19.2 per cent, the highest in over 45 years.
If the aim is to ensure the best outcomes for society, the Liberal Democrats offer a balanced and pragmatic approach. Their commitment to fiscal responsibility combined with targeted investments in education, skills and green technology, positions them as the most economically viable option for sustainable and inclusive growth. Their focus on repairing international trade relationships adds further stability in a post-Brexit economy.
If you have a financial query, please call Peter on 01872 222422..
Peter McGahan is the Chief Executive Officer of Independent Financial Adviser Worldwide Financial Planning. Worldwide Financial Planning is authorised and regulated by the Financial Conduct Authority.
