Labour will boost the London stock market by making Britain more attractive to foreign investors, City broker Peel Hunt has said. The potential arrival of Sir Keir Starmer in Downing Street would aid the UK’s attempts to become investable again by easing the political instability of the past decade, according to the investment bank. Charles Hall, an analyst at Peel Hunt, said that having a Labour government that “can actually have longer-term plans and some stability” would feel like “there are grown-ups back in the room”. Mr Hall added: “That is really important for overseas investors. Perception really does matter. I think that will be a trigger for more appetite for UK assets.” The investment bank estimates that shares in British-listed firms are sold at a 20-25pc discount relative to rivals on markets overseas. A prospective change in government later this year could help chip away at this discount, Mr Hall said. He warned that the UK has gained a reputation of instability over the last decade, driven by events such as the Scottish independence vote and the Brexit referendum. Mr Hall said: “For an overseas investor to want to invest in someone else’s market, they need to have trust...