The 2024 election has been and gone. Labour won and have the keys to Number 10. The new administration will likely have a brief honeymoon period where problems of the past will be glossed over and forgiven. But after that comes the hard graft and the implementation of manifesto policies.
But from a business perspective, what do firms and employers want to see changed? An awful lot, if we believe what has been said in the media.
Unlocking investment
Starting with the managing director of Lloyds Banking Group, Charlie Nunn, who recently said in the Financial Times that economic growth is key. He believes “we will only crack the UK growth challenge if government and business team up to unlock investment, improve productivity and address skills shortages.” From his viewpoint, the country needs a revised planning regime along with more investment in skills.
Centralised Planning
Planning change is not unique to Nunn. Accountants James Cowper Kreston published a 10-element manifesto in The Business Magazine in March. One of its wishlist demands was the creation of a centralised planning department with “the current system to be removed from local control in cases where schemes will have significant economic impact.”
Tax system
The same manifesto called for “simplification and consistency to the tax system” and “the new government to commit to a period of stability at the start of its new term.”
Accountants Grant Thornton also says that simplifying the business tax system, introducing corporate tax cuts for UK businesses, and providing tax incentives for employers to invest in R&D, are necessary.
The Federation of Small Businesses agrees that “easing tax burdens should be a priority of the next government.”
Financial services
Nunn, as a provider of financial services, not unsurprisingly, wants better regulation of the banks. As he puts it, this would “enable banks to play their full part in lending and investing to get the economy moving while safeguarding financial stability and high standards of consumer protection.”
SME Today agrees. Its top priority is establishing long-term government-backed financial support. It said “the temporary lifelines provided during the pandemic underscored the importance of accessible financing options for small businesses. Addressing issues such as loan repayment, interest rates, and financial regulations proactively is crucial.”
And this makes sense; access to capital is essential for businesses of all sizes if they’re to grow. The UK needs to make the country appealing to overseas investors through tax breaks, investment schemes, and venture capital support.
Focus on skills
Back in March, Grant Thornton said that “businesses would like to see government focus on investing in skills and training to support business growth, as the competition for talent intensifies.” It also thought that “supporting skills development… with tax incentives for employers to invest in skills” ranked number one, alongside incentives for green investment”.
Digital connectivity
If there’s one thing that everyone is crying out for, it is better and less expensive digital connectivity – think high-speed broadband and mobile telephony. This is high on the trade association TechUK wish list. It believes that artificial intelligence (AI) is “the most significant new technology for tech businesses” but that “AI can only deliver if we have the infrastructure to support it.”
Of course, many other policy changes have been called for – a better industrial strategy, a better transport network, a stronger sustainability policy, and so on. But ultimately, any government will be limited by what it can afford without raising taxes and by numerous external influences.
We now have to wait and see if the new government can deliver.