19. Weekly Newsletter
Conservative Party faces defeat
The recent series of mayoral contests, spanning from London to the West Midlands, has dealt a significant blow to the Conservative party. The anticipated victory of West Midlands mayor, Andy Street, and the expected tight battle for City Hall between Susan Hall and Sadiq Khan were overturned. Khan secured a comfortable victory, marking his 3rd consecutive term in City Hall, while Labour’s Richard Parker won against Andy Street by a narrow margin. Labour’s triumph extended to the mayoralties of Greater Manchester, Liverpool, and West Yorkshire, with the Conservatives losing approximately 400 council seats. This political shift is a substantial setback for Rishi Sunak, with Labour now poised to win in the upcoming election, as the BBC predicts a slim 25% national vote share for the Conservatives.
Conservative MPs have urged Rishi Sunak to show some vision and set out a plan to dig his party out of the “hole” they are currently in after such a damaging defeat. Rishi Sunak has stated that the result of the next general election is not a “foregone conclusion” and has expressed his determination to fight. Despite the loss, Sunak’s leadership is not expected to be challenged within the Conservative party.
Newspapers
Over the last seven days, the UK’s front page news cycle has covered varied topics. Some of the newspaper headlines from this week were:
- Financial Times- ‘John Swinney appointed new leader of Scottish National party’
- Financial Times- ‘Andy Street’s defeat marks brutal end to grim Tory election campaign’
- Financial Times- ‘Heineken to reopen closed UK pubs as cost of living pressures ease’
- Financial Times- ‘Asda’s owners piled on £1.5bn of liabilities to fund petrol station deal’
- Financial Times- https://www.ft.com/content/f57e608b-f230-44c9-97f8-44c5c60f3ccb
- The Times- ‘UK government’s climate action plan is unlawful, High Court rules’
Aston Martin struggles
Aston Martin experienced a 90% rise in losses in the first quarter as the company reported £138 million in losses compared to £74 million just one year ago. At the same time, revenues also dropped by 10% to just under £270 million. The two main reasons are the drop in SUV sales, which fell by 63%, and the rising costs to refinance debt. These figures will provide a massive challenge for the new chief executive who has joined from Volkswagen’s Bentley.
