A largely comforting backdrop into the election Labour is on course for a landslide on 4th July, implying a comfortable mandated to govern. Unlike some neighbouring economies, the UK appears to be steering away from populist politics, with Labour campaigning on a centrist ground and wealth creation a pillar of its campaign, in contrast to prior Labour leadership. A tight fiscal outlook limits firepower but has also led to pragmatic messaging and limited divergences in top-down economic policy versus the Conservatives. Limited surprises welcome, particularly for the banks The labour manifesto published on Thursday contained negligible surprises, with proposed policies well flagged and the financial sector spared from curve balls of new taxes (private equity aside). Labour had also already defused the risk of (much hyped) deposit-tiering earlier this week. Half glass full, suggests further support for lending volumes It appears clear that Labour understands the corporate sector will need to be an engine of growth and is looking at how to work with the banks. For a sector devoid of lending growth in recent years, any support is welcome and proposed refinements to planning law, and commitments to deliver 1.5m homes this Parliament, could conceivably add 1% per annum to a GBP1.6trn mortgage market. For insurance - motor pricing, ground rents, and pensions in focus, but lacking specifics Labour will seek to tackle higher car insurance prices, as previously flagged, although we are no clearer on how. There is a vague commitment to act on Ground Rents (an asset on insurers'' balance sheets). And a pensions review will look at how to maximise productive investment from pensions. These topics have been well flagged, with no incremental detail in the Manifesto. Investment implications The election is not a game-changer, but political risks have diminished, supporting CoE. We remain constructive on the domestic UK banks and balanced on UK insurance.