New UK government faces tough economic challenge

The Labour government in Britain has pledged to grow the economy following a landslide election victory over the Conservatives. Prime Minister Keir Starmer has promised investment in key areas such as health and education but also stressed the need to balance the books. The centre-left Labour administration, led by Prime Minister Keir Starmer, aims to avoid a repeat of October 2022, when the then-Conservative government's proposed unfunded tax cuts spooked markets and tanked the pound.