Labour Leads in Polls But Faces Economic Challenges if Elected
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Labour is leading in the polls and likely to win the next general election, inheriting an economy that is stagnant and battling high inflation.
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The Bank of England is keeping interest rates high to fight inflation, risking recession this winter, which could hurt the Conservatives more than Labour.
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An incoming Labour government will struggle with the need to improve public services despite tight finances after Conservative tax cuts.
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There are some signs the economy could pick up, with businesses having cash to invest once recession risks fade.
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The Conservatives are failing to capitalize on modest good news like improvements in education, consumed by issues like the Rwanda asylum policy row.