At 8.30 am the FTSE100 was up 0.41% to 8275.29 while the FTSE 250 was up 0.92% to 20799.65.

The pound was up 0.12% against the US$ to $1.2770 while against the Euro it was down a fraction, 0.02%, to €1.1796.

Industry experts gave a broad thumbs up to news of the Labour victory which, with a small number of seats left to declare, gives Labour 410 seats, a majority of 209.

The Conservatives lost 248 seats with their total falling to 119. It was a good night for the LibDems who took 71 seats and the Reform Party took 4 seats. In Scotland the SNP lost 38 seats, falling to a total of just 9.

Labour leader Sir Keir Starmer is expected to visit King Charles today where he is expected to be asked to form a new government.

All financial services eyes will turn now to Labour’s economic, fiscal and taxation plans, particularly on pensions.

In its manifesto, Labour promised to carry out a major review of the UK ‘pensions landscape’ if elected.

The manifesto promised to carry out a pensions review to, “consider what further steps are needed to improve security in retirement, as well as to increase productive investment in the UK economy.”

Labour also promised to try to increase investment from pension funds into UK markets although it has not made clear how this will be done.

The manifesto says: “We will adopt reforms to ensure that workplace pension schemes take advantage of consolidation and scale, to deliver better returns for UK savers and greater productive investment for UK PLC.

"We will also undertake a review of the pensions landscape to consider what further steps are needed to improve pension outcomes and increase investment in UK markets.”

Overall, Labour Party leader Sir Keir Starmer has pledged economic stability and fiscal responsibility.

Labour has said it has no plans to increase several key taxes, including income tax, but there was no confirmation from the Labour manifesto that it would not raise Capital Gains tax or IHT or introduce new taxes.

The manifesto also promised to raise £8bn through VAT on private school fees and via a windfall tax on oil and gas providers.

Mr Starmer added that his party would make “hard choices” but will not raise income tax, National Insurance, or VAT.

Initial reaction to the result was positive.

Salman Ahmed, global head of macro and strategic asset allocation at Fidelity, said: “The Labour Party led by Sir Keir Starmer has achieved a landslide victory in the UK’s national election, a result which is likely to support the country’s improving economic situation. Labour is expected to pursue a more collaborative and constructive relationship with the EU, for example - an approach that should lead to smoother trade negotiations, reduced tariffs, and more predictable regulatory frameworks.

“By addressing Brexit-related disruptions, Labour's policies aim to foster a more integrated and efficient market environment. UK businesses operating within and trading with the EU stand to benefit. Likewise, a stronger relationship with the EU should help repair the UK’s business investment trends - by some measures the worst in the G7."

Daniele Antonucci, chief investment officer at Quintet Private Bank (parent of wealth manager Brown Shipley), said many would be waiting for details of economic plans.

He said: "Labour’s policies should be neutral for the UK’s long-term economic growth, in our view. However, precise details are still lacking, and there’s, of course, a wide range of scenarios when it comes to the possible effects. In general, in the near term, we’d expect somewhat firmer support for consumer spending."

Lily Megson, policy director at My Pension Expert, said: “A Labour victory was as close to inevitable as you could get. Yet, Starmer and his party must not be complacent. Britons have experienced a great deal of financial hardship throughout the final years of Conservative governance. Financial Planning – particularly retirement planning – has been an uphill battle for many Britons.
 
“As such, it is vital that the incoming government work rapidly to ensure economic stability. Further, pension policy must be airtight. Leading the party’s plans for pension policy is a comprehensive pensions review – a much-needed initiative that should be a top priority. With millions not saving adequately for retirement, the review must result in reforms that improve access to financial education, boost pension engagement, and simplify savers’ experience of the sector. Indeed, closing the engagement gap must be top of the agenda for the new government."