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5 UK shares to watch as the general election approaches

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The next month or so is critical for UK shares as the public prepares to decide who should run the country. And there are some key themes that investors should keep an eye on.

Right now, bookmakers are setting Labor’s odds of winning the most seats at 2:17, compared to 18:1 for the Conservatives. But whatever happens, there are some key stocks to watch.

BP and Shell

The establishment of a publicly owned energy company is an important labor policy and includes the financing of what is called “A Fair Windfall Tax on Oil and Gas Giants”. Shell And B.P Shareholders should pay attention here.

The plan includes removing a measure to give oil companies 91p tax relief for every £1 invested in UK operations. And this can be a big problem for him. FTSE 100 Major oil companies and their investors.

In theory, rising oil prices are one of the best things to happen to Shell and BP. But if it’s met with higher taxes, it won’t translate into the kind of returns that shareholders might be hoping for.

Whether the labor policy is good or not is a different issue. The key question for investors is how likely it is that oil companies will have a serious problem returning cash to their investors.

Primary health properties

The Conservatives are planning to invest heavily in health care. This can be a positive thing for him. Primary health properties (LSE:PHP) – a real estate investment trust (REIT) that owns GP surgeries.

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The company receives the majority of its rent from the NHS. And the current government planning to build 100 more surgeries in England if it wins the election is a positive sign for future demand.

Primary Health Properties has a large amount of debt on its balance sheet, which is the biggest threat to its dividend. Future investment in GP surgeries will help this significantly.

Bookmakers are currently thinking that change may be coming. But with Labor intent on reducing wait times for doctor’s appointments, I think the stock is worth a closer look.

Rolls-Royce and BAE Systems

Defense is one area that has not featured prominently in the election campaign this time. But this is an investor to keep a close eye on.

Under NATO agreements, the UK is required to spend 2% of its GDP on defence. Both Labor and the Conservatives have pledged to raise it to 2.5 per cent after the election.

Higher defense spending should be positive for both. Rolls Royce And BAE Systems. Both derive substantial income from the UK’s defense sector and should benefit from growth in the sector.

Of course, any increase in spending is dependent on GDP growing – or at least staying strong enough. Investors therefore need to consider the overall policies as well as pay attention to the details.

Election opportunities

Over time, the best investment returns come from owning a quality business. But government policies can make it too easy or too difficult for even the best companies to make money over time.

Therefore, UK investors should pay close attention to the upcoming elections. In some cases, the outcome can significantly affect the return on investment going forward – positively or negatively.

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