Growth plan: How will Rachel Reeves's plans affect me?
Published On Jan 29, 2025, 11:21 AM
Chancellor Rachel Reeves is promoting a series of infrastructure projects, including the construction of a third runway at Heathrow, to stimulate economic growth in the UK. The government aims to enhance job creation, wage increases, and public service funding through these initiatives. Reeves emphasizes the importance of a thriving economy but acknowledges that tangible benefits will take time, with many projects not expected to bear fruit until several years down the line. Immediate impacts may be felt by sectors linked to construction and technology, while broader effects depend on public sentiment and spending behavior.
Stock Forecasts
IAG
Positive
Companies in the aviation sector may see opportunities arising from the expansion at Heathrow, though immediate effects may vary. Increasing airport capacity could encourage more airline operations and passenger travel, positively impacting airline stocks in the long run.
GLIN
Positive
Investors might consider ETFs focused on UK infrastructure or construction, which are poised to benefit from government spending and projects. This sector is likely to grow as the government aims for an upward trend in economic activity, especially if projects generate favorable job creation and contractor demand.
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