Local results leave UK Labour Party in pole position

Significance

The main winner was the opposition Labour Party, which became the largest party in local government for the first time since 2002. The elections are the last major test of public support for the parties before the next general election, which is likely to take place in mid-to-late 2024.

Impacts

• The United Kingdom is forecast to experience an unprecedented fall in living standards over the next two years.
• Following tight measures in the Spring Budget, there is some space for tax cuts or spending increases in October.
• The government will likely seek to tighten immigration laws to show right-wing voters that it is addressing the surge in net migration.