The snap election of early July hailed Britain's first Labour government in 14 years, and nearly a month on since the result was announced, businesses have been readying themselves for what could be a very different landscape ahead.

With summer recess now in full swing, we spoke with a number of consultants working across public affairs, communications and policy to better understand what a Labour government could mean for today’s businesses, and their insights on how to become a voice of influence for Starmer’s Cabinet.

Read more: UK Snap Election: Why It’s Time to Invest in Public Affairs Expertise

The Labour Manifesto & UK Businesses

Since the party’s last stint in Downing Street, the UK has undergone vast challenges on a national and international scale – Brexit, COVID-19, a cost of living crisis and economic instability to name a few – leaving the new government in a demanding position. 

Unsurprisingly, Labour’s manifesto sets out plans to address some of the most pressing topics, and many of these could have a significant impact on businesses trading in the UK.

Technology & Digital

Embracing innovation and expanding digitisation is amongst the top priorities for Labour, and regulations surrounding advanced tech may take centre stage.

The party has pledged to establish a new Regulatory Innovation Office, setting targets for tech regulators, and establishing more stringent deadlines for both regulatory bodies to achieve priorities and the government to respond. The RIO would also purportedly address AI regulation.

“The departure from the EU still leaves a great deal of room for the tailoring of industry regulatory spheres that were previously controlled by Brussels. Businesses will need to examine the ‘nitty-gritty’ rules that define their industries and engage on the areas – using evidence-led analysis – they would like to change or improve.” – Michael Sturrock, Public Affairs, Policy & Communications Consultant

For businesses, this could mean greater access to capital and enhanced innovation. But, if regulation and reporting increases across the likes of AI, data, and other common privacy concerns, brands might see a ripple effect on their own operations and resource allocation.

Business Rates & Economic Growth

Growth and greater stability is top of the agenda for Labour. The party has pledged to cap corporation tax at 25%, and reform business rates to create a more level playing field for smaller brands.

There also appears to be clear opportunities for startups and scaleups. SMEs currently comprise around 5.6 million businesses in the private sector – an increase of around 1.1million (24%) since 2010, when a Labour government was last in power – and according to the party, small businesses are “not just the lifeblood of our communities but essential to our economic success.”

“The new Labour Government is facing immense challenges, whether that be stimulating a lagging economy, tackling NHS waiting lists, or delivering net zero. The Government cannot solve these challenges without the help of the private sector.” – Katie Fairhurst, Senior Public Policy, Public Affairs & Strategy Professional

Labour aims to tackle late payments (a significant hurdle for smaller enterprises), increase access to capital, and implement fairer chances to secure public contracts for SMEs. 

Net Zero Energy

A net zero future has been cited as a firm commitment of the new government, with the aim of making the UK a “clean energy superpower”. The agenda involves rolling out a number of tactics, including new gigafactories and green hydrogen manufacturing, developing advanced carbon capture technology and making the UK the “green-finance capital of the world”.

According to the party’s Manifesto, the net zero plan will make British businesses “internationally competitive”, and provide greater access to financial support for decarbonisation. Financial services and FTSE 100 companies would also be mandated to develop transition plans which align with the Paris Agreement.

However, it’s not clear if and what fines businesses could face if they don’t achieve mandates.

Skills & Talent

Where talent is concerned, Labour plans to invest heavily in skills development and establishing more jobs across key industries.

There are also a number of potential changes on the horizon surrounding workers’ rights and equality. Abolishing zero hour contracts, so-called “day-one rights” for sick pay and parental leave, and changes to National Living Wage. Labour has also proposed amends to equal pay laws and pay gap reporting to help address inequalities for ethnic minorities and people living with disabilities.

For many, these would likely be welcome changes, but it’s worth noting that they could mean significant operational shifts for businesses that would likely disproportionately affect SMEs. But, how this plays out in reality is yet to be fully defined.

Building Relationships with the Labour Government

Starmer’s Cabinet has a vested interest in working alongside British businesses and organisations to further Labour’s political agenda, and the right leaders in the right industries with the right insights can make all the difference.

Leaders who didn’t start before the snap election could be on the backfoot. Many businesses have been investing in public affairs for upwards of 6-12 months to prepare for the election.

“The approach has to be to show the Labour government what works and can be made to work quickly. The election victory is huge, but the increase in volatility means that Labour needs to have clear proof points in 5 years' time. Everyone engaging with the government would do well to remember that." – Dr. Stuart Thomson, Founder of CWE Communications

Ultimately, Labour’s ambitious plans mean the party will be interested in hearing ideas, solutions and contributions to policy development from those in the know.

1. Look beyond Westminster. It’s likely Starmer will continue to look to local government to help deliver the party’s agenda, so it’s worthwhile identifying new parliamentary cohorts in your area (and what their focuses are), and connecting with them in a meaningful way.
2. Leaders who want to carve a reputation for themselves as a leading thinker and doer should be specific about the insights they can offer, and provide costed solutions which clearly fit Labour’s agenda.
3. Become an expert on the Labour manifesto, and use their language to support your mission. Invest time and resource into the relevant analyses, and put your case forward in a way which is both clear and defined.

Investing in Public Affairs consultancy means investing in your business’ position. With over 5,000 seasoned professionals in our network, The Work Crowd can help you develop your government relations and public affairs strategy, and help establish your leadership as true advisors to the Labour government. Speak to our team today.