BlackRock CEO: Keir Starmer Gives Hope to British Politics

BlackRock CEO Larry Fink attends a session at the World Economic Forum annual meeting in Davos on Jan. 23, 2020. Fabrice Coffrini/AFP via Getty Images

One of the world’s most influential financiers has backed the Labour Party leader Sir Keir Starmer, suggesting he offers a “measurement of hope” in political leadership.

Larry Fink, chairman and CEO of BlackRock—the world’s largest asset manager—said that he was pleased with the progression of the Labour Party.

Speaking to the Wall Street Journal on Tuesday, Mr. Fink signalled his support for Sir Keir and said that if the Labour leader wins the next general election, it would offer “hope” for the political establishment.

Mr. Fink said he had spent time with both the Conservatives and Labour during his visit in the UK.

“I’m very pleased to see how the Labour Party in the UK went from, I would say, an extremist party… Marxist leaders, to Sir Keir Starmer has shown real strength as a moderate Labour Party,” the BlackRock CEO said.

He referred to the shift in Labour leadership after Sir Keir replaced Jeremy Corbyn as party leader in April 2020.

Mr. Corbyn led Labour from 2015 until he stood down after the party’s resounding defeat in the 2019 election.

During his time as party leader, Mr. Corbyn was criticised for an unclear Brexit approach amid his previous criticism of the EU.

Under Mr. Corbyn, Labour was investigated over antisemitism allegations, following complaints from Campaign Against Antisemitism and the Jewish Labour Movement.

The former Labour leader positioned himself as a socialist, while his views were seen as too left-wing by some party officials.

“The pendulum went so far there,” said Mr. Fink.

The BlackRock boss argued that Brexit triggered high levels of populism in the UK, while the rise of populism led to Donald Trump winning the 2016 U.S. presidential election.

“Well, we'll see what happens, if Starmer gets elected in, let’s say, a year from now. But I believe that’s a measurement of hope,” Mr. Fink said.

Political Significance

Mr. Fink’s praise of Sir Keir could boost Labour’s profile among business leaders in the UK and abroad, as the party strives to secure the highest sustained growth in the G-7.

Speaking about business strategy in May and recently at the Labour Party conference, Sir Keir vowed that Labour would construct more homes, energy infrastructure and business facilities if the party wins the next election.

On economy decarbonisation—an issue close to Mr. Fink—Sir Keir promised to “speed ahead” and deliver clean, homegrown low carbon power.

BlackRock is known for its support of the environmental, social, and governance (ESG) agenda. However, in 2023 Mr. Fink admitted that oil and gas are “vital” to global energy demand—a shift from his earlier stance promoting a climate change agenda which focused on progressive values that denounce fossil-based fuels.

While he has praised Prime Minister Rishi Sunak for rolling back on net-zero-carbon targets, Mr. Fink’s vision echoes that of Sir Keir, who said in June that “oil and gas are going to be part of the mix for decades to come, into the 2050s.”

At the same time, Labour confirmed it would “not grant licences to explore new fields” in the North Sea, if it wins the next election.

Instead, it would create a new publicly-owned and Scotland-based company, Great British Energy, meant to cut energy bills and deliver green economy jobs.

Both the Conservatives and Labour are keen to convince voters of their ability to strengthen the economy and alleviate the UK cost-of-living crisis.

Speaking of Britain’s capital holdings, Mr. Fink said that the UK doesn’t have a big pool of money for long-term equity, long-term asset.

“Thirty years ago, the UK was a big exporter of capital. They’re going to have to be an importer of capital. And, to me, there’s a good example of why we need resilient, powerful capital markets,” Mr. Fink said.