Connect with us

Business and Economy

What the economic data told Rishi Sunak about the best date for a general election

Published

on

Former British Finance Minister Rishi Sunak

But they might feel more confident if UK political parties looked at policy identification and prioritisation through the same evidence-based lens that informed Rishi Sunak’s choice of July 4 for the election date. (File photo: Rishi Sunak/Facebook)

The announcement of July 4 for the UK general election took many by surprise. A key question is why it was called then when it did not have to be? The decision to call an election is always a gamble – there is perhaps no right time – and many factors feed into that call.

Legally, a general election had to be called in 2024. Behind the scenes, those in Number 10 will have been modelling when the vote should be held with the help of key economic indicators such as inflation and gross domestic product (GDP), as well as analysing the polls and speaking to focus groups.

In the UK, the power to request a dissolution of parliament and call an election lies with the prime minister. The party in power uses a process known as “evidence-based diagnostics”, in which evidence is collected regarding the state of the UK and analysed alongside voter perceptions, in an attempt to identify the best time – for them – to call an election.

This is complex, as it includes an assessment of the strengths and weaknesses of rival parties, and of independent analyses published by organisations such as the World Bank, the Organisation for Economic Co-operation and Development (OECD), and the International Monetary Fund (IMF). Increasingly, artificial intelligence is applied to sift through these vast amounts of data to spot patterns and make predictions.


Want more general election coverage and analysis from The Conversation’s academic experts?

Sign up for our new, weekly UK politics newsletter, delivered every Friday throughout the campaign and beyond.


Recently, there has been some very good economic news highlighting that Britain is not as broken as politicians or some journalists might like us to believe. The UK inflation rate in April dropped to 2.3%, and GDP was estimated to have grown by 0.6% in the three months to March 2024.

The quest for economic stability

These two indicators played an important role in the decision to call a general election for July 4. It may be that, in terms of the economy, this is the best time for the Conservatives to take the fight to the Labour party, especially as Labour’s offer hinges around the promise of economic stability.

The UK economy has experienced an early recovery from the technical recession it experienced in the second half of 2023. Household incomes have improved and this is bolstering consumer spending. Some of this reflects alterations that were made in the 2023 Autumn Statement, including the four percentage point reduction in National Insurance contributions paid by employees.

In addition, financial markets now assume the Bank of England will begin cutting interest rates in August or September 2024, rather than in June. The anticipated timing of these cuts suggests the government had little to gain by waiting until the autumn to hold this election, because of the lag time between an interest rate cut and its impact.

As such, the Conservative party can claim there is evidence the UK has already reached a time of economic stability that provides a platform for growth. Vote for us, they say, and we’ll build on this work.

Meanwhile, Labour has unveiled its pledge card with six key policies, including economic stability. These are the six initiatives that its analysis will have identified as being most attractive to voters and party members.

Above all, Labour is arguing that now is the time for change. But to argue for change by itself is insufficient. Not all change is desirable and change also tends to disrupt, resulting in uncertainty and instability.

My experience in evidence-based diagnostics leads me to believe that neither party has made best use of this process in identifying the key challenges the UK faces.

In many respects, it is good for countries to experience regular changes in their leadership. Diagnostics to identify the most important challenges to tackle should be central to this, but politics – that is, the effort to please voters – will dominate this and many more general elections. There is a tension in all countries between the interests and needs of citizens as identified by the evidence, compared with the desires of politicians to form the next government.

Voters will hope the next UK government can rise to the challenge and ensure both economic growth and national security. But they might feel more confident if UK political parties looked at policy identification and prioritisation through the same evidence-based lens that informed Rishi Sunak’s choice of July 4 for the election date.The Conversation

John Bryson, Professor of Enterprise and Competitiveness, University of Birmingham

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest

Entertainment2 days ago

GMA Network triumphs at the Asia-Pacific Broadcasting+ Awards 2024

As it takes bold steps to embrace the industry’s rapid digital advancements, media giant GMA Network was among the broadcasting...

Entertainment2 days ago

“Pulang Araw” debuts early on Netflix; GMA drops trailer of the groundbreaking series

GMA Network’s highly-anticipated drama, “Pulang Araw,” is set to premiere on Netflix this July 26. In a first for the Network, the...

Immigration2 days ago

Canadian Immigration Lawyers Association recommends IRPA legislation reform

Last month, members of the Legislative Reform Committee from the Canadian Immigration Lawyers Association (CILA) released a report outlining how CILA would...

burger burger
Food2 days ago

Are plant-based burgers really bad for your heart? Here’s what’s behind the scary headlines

We’re hearing a lot about ultra-processed foods and the health effects of eating too many. And we know plant-based foods...

human anatomy human anatomy
Health2 days ago

Body organs aren’t always where they are supposed to be

Organs in the body tend to be in a set order and position. This is useful when it comes to...

Canada News2 days ago

10 ways to support 2SLGBTQIA+ youth this Pride Month

June is Pride Month in many parts of the world. It commemorates the 1969 Stonewall Riots in New York City...

people walking on pedestrian people walking on pedestrian
Health2 days ago

Despite improved WHO regulations, the world remains ill-prepared for the next pandemic

The international community’s recent failure to conclude a global pandemic agreement leaves large gaps in our capacity to deal with...

Business and Economy2 days ago

Apple insists its ChatGPT tie-up will protect users’ privacy: here are the questions it must answer first

Apple, a company known for its longstanding commitment to user privacy, has received flak since unveiling its artificial intelligence (AI)...

bank buildings bank buildings
Business and Economy2 days ago

The Lib Dems want to tax the banks more – is this a good idea?

The Liberal Democrats were the first party to unveil their manifesto and the first party to break ranks and declare...

water faucet water faucet
Canada News2 days ago

Calgary water shortages: Key ways to reduce your water footprint

The water main break that’s impacted Calgary, and the voluntary water use reductions that have followed, has been a wake-up...

WordPress Ads