At our recent Labour Policy Insights event Dr Rebecca Harding, Senior Fellow of the British Foreign Policy Group, provided valuable insights into the current global economic landscape and its implications for UK investors ahead of the Autumn budget on 30 October.

Despite widespread market volatility - driven by geopolitical conflicts and elections affecting 49% of the global population this year - Dr Harding highlighted significant opportunities in infrastructure, sustainability, and defence sectors. These sectors have demonstrated particular resilience to global uncertainty, with government initiatives such as GB Energy and the National Wealth Fund further strengthening infrastructure and sustainability positions. These initiatives reflect a clear focus on job creation and growth while reinforcing the UK's commitment to energy security and its green agenda. Meanwhile, increased tensions in Ukraine and the Middle East have heightened focus on national defence capabilities Dr Harding noted.

Another key theme discussed was the importance of often-overlooked economic relationships and their hidden influence on the budget. While perhaps not headline-grabbing, Dr Harding stressed how strategic partnerships are proving crucial for the UK's economic future. She highlighted three key relationships: expanding cooperation with Germany, which has implications for broader EU relations; increased oil imports from India; and growing investment ties with Saudi Arabia, representing a significant source of inward investment.

The complex US-UK relationship received particular attention during Dr Harding's speech, especially regarding its influence on broader international trade dynamics with China. Dr Harding emphasised the importance of carefully managing exposure to China, given the consistently hawkish approach from the US, regardless of who occupies the White House. As the UK navigates an increasingly unstable global landscape characterised by economic warfare and political uncertainty, alignment with US positions on key issues becomes increasingly critical, she suggested.

Dr Harding described how a slow and methodical approach to policy implementation reflects a deliberate strategy by the UK to maintain market stability and, as a result, attract global investment. The government's priority is to position the UK as a secure, business-friendly environment, likely leading to measured policy implementation across these key sectors.

These insights underscore the importance of strategic planning and resilient investment approaches in today's challenging global environment.

You can view the full event recording here.

^{The views and opinions expressed by third party speakers may not necessarily represent the views and opinions of Foresight Group LLP.}