• Swindon & Wiltshire Economy
• Friday July 5 2024
• Author Name: Peter Davison

General Election 2024 – the business world reacts

Business organisations have welcomed stability provided by the ‘clear result’ won by Labour yesterday’s General Election, the results of which were confirmed in the early hours of this morning (Friday, July 5).

At 5am it was confirmed the Labour Party had won the 326 of the 650 it needed to form the next government.

Labour had spent the six-week campaign positioning itself as a pro-business party, and putting economic stability and growth at the centre of its pitch to voters.

‘The really hard work starts now’

The British Chambers of Commerce welcomed the result, pledging to work with Labour leader Sir Keir Starmer.

“Congratulations to the Labour Party on their victory after a long and hard-fought campaign,” said director general Shevaun Haviland.

“The public have delivered them a clear and decisive parliamentary majority – hopefully they will use this mandate to provide the stability and certainty businesses crave.

“How we revitalise our economy was hotly debated throughout the past six weeks, and it is encouraging to see they have many policies which clearly align with our recommendations.

“But after a gruelling election the really hard work starts now. We need to see action from day one on pulling together a coherent industrial strategy for the long-term, which places a strong emphasis on harnessing green innovation.

“Closing the skills gap, growing exports, boosting productivity and harnessing the power of AI won’t happen overnight.

“And businesses will also want to see early movement on pledges around business rates reform and improving our trade relationship with the EU.

“None of this will be easy, and our new Government should not be expected to do it alone. But our entire Chamber Network and the 51,000 businesses it represents will be ready to put their shoulders to the wheel and help.

“If our firms succeed, then our communities prosper, the economy grows, and the wealth needed to support our public services is created.”

‘A golden chance… to plant the seeds of small business growth’

The Federation of Small Businesses said the “clear result… gives hope that political stability can lead to economic stability and recovery.”

Policy chair Tina McKenzie said: “Congratulations to the new Prime Minister and Government on their decisive election victory, and congratulations to the newly elected MPs from all parties.

“The clear result of the General Election gives hope that political stability can lead to economic stability and recovery.

“There’s a golden chance in the first 100 days of this new administration to plant the seeds of small business growth, and there are a range of policies FSB hopes the new Government will bring forward.

“These include measures to ease the cost of doing business and support investment and expansion. From tackling poor payment practices by big businesses to their smaller suppliers to reforming the not-fit-for-purpose business rates system.

“The upcoming King’s Speech should include a Small Business Bill to enshrine in legislation much-needed changes to better support small firms and the self-employed.

“Supporting and growing small businesses is good for jobs, good for communities in all parts of the country, and good for the whole economy.

“We’re looking forward to getting down to business and working in partnership with the new Government ministers and their teams – building on how we’ve engaged constructively with them in Opposition.

“This will ensure that the small business voice is heard clearly and the right actions can be taken to support existing entrepreneurs and encourage new ones.”

‘What firms need now is a government that’s ready to hit the ground running’

The Confederation of British Industry said Labour’s victory marked “the moment to get behind growth.”

Chief executive Rain Newton-Smith said: “Congratulations to Sir Keir Starmer and the Labour Party.

“Delivering sustainable growth should be the defining mission for the new government. Business stands ready to bring its innovation, ideas, and investment to make that shared mission a reality.

“The new Prime Minister has been given a clear mandate to take the tough decisions on areas like planning reform and boosting grid capacity needed to get the economy firing on all cylinders.

“What firms need now is a government that’s ready to hit the ground running and is laser-focused on delivery.

“Households and businesses across the UK have shown incredible resilience through Brexit, Covid and war in Europe. With the economy picking up steam, now is the moment to get behind growth.

“Setting out a positive vision for the UK economy and leaning into our international leadership should be top priorities for the first 100 days.

“Building a partnership for prosperity between government and business holds the key to unlocking a revitalised pitch to global investors.

“By working with business, the new government can deploy the capability and capacity of industry to deliver the connected transitions across net zero, the digital economy, and the future of work needed to put the economy on a pathway to sustainable growth.”

‘An end to the political and economic instability ‘

Make UK, the manufacturer’s organisation, said manufacturers “stand ready to work with the new Government and all stakeholders as a matter of urgency to help deliver this.”

Chief executive Stephen Phipson said: “I congratulate Sir Keir Starmer on leading his party to a decisive victory. Business will welcome such a clear result and an end to the political and economic instability of the last few years which is essential for companies to now bring forward much needed investment.

“Looking ahead, the new Government has a lot in its in-tray to address. First and foremost is the urgent need to kick start the UK’s anaemic growth levels of recent years and, boost investment in our infrastructure, without which we cannot address the many urgent priorities the Country faces at national and regional level.

“A modern, long-term industrial strategy which tackles the skills crisis in particular will be key to delivering this growth.”

‘Building the homes the country needs will address the social issues our housing crisis is creating’

And the Home Builders Federation said its members were committed to “working with the new Government to address challenges threatening housing supply and support home builders to deliver much-needed housing.”

Chief executive Neil Jefferson said: “We look forward to engaging with the new Government on how we deliver its very welcome ambitions for housing delivery.

“Recent years have seen sharp falls in both the number of homes being built and the planning permissions being granted and there are some major barriers that need to be removed if we are to meet the challenge.

“We welcome the Government’s commitments on planning. The recent weakening of the planning system and the lack of capacity in local authority planning departments are the current biggest constraint on delivery.

“We also need to see effective support for first-time buyers to address the lack of affordable mortgage finance, and workable solutions to the nutrients issue that is holding up around 160,000 homes.

“If Government can create a pro-development policy environment the industry stands ready to deliver.

“Building the homes the country needs will address the social issues our housing crisis is creating, provide young people with access to decent housing, whilst creating tens of thousands of jobs and boosting investment in communities in every area of the country.”

Local reactions

Rashik Parmar MBE, chief executive of Swindon-based BCS, The Chartered Institute for IT said: “The new Prime Minister has a unique opportunity to take a positive view of AI and high stakes technologies, making sure they transform the lives of everyone in the UK.

“By setting high standards for those who direct and develop computing in areas like health, security and other vital public services, the UK can be an example to the world.

“That’s why this government should back Chartered status for technology professionals, setting the same expectations of competence and ethics as regulated fields like accountancy and medicine.

“Then to secure the future, we need to prioritise digital literacy and computing education in schools and make tech careers appeal to a far broader group of people.”

Martin Gurney, a partner with Swindon accountancy firm Haines Watts, said: “Yesterday’s landslide victory was predicted by many, and the extent of Labour’s victory means that they will have little or no effective opposition in the House of Commons, barring some dramatic backbench revolt.

“Labour’s manifesto policies on tax are headlined as “Labour will not raise taxes on working people” and they have currently undertaken to freeze Income Tax thresholds until 2028, not increase the main rate of VAT, and not change Corporation Tax. So, in theory, the tax waters should remain relatively calm.

“However, a note of caution – as with any new government, they haven’t yet “had a look at the books” and therefore we must be mindful of the fact that, if economic current conditions are not as they expected, or if there are dramatic changes in economic conditions, not only can they change their policies but, with their majority as it stands, they may have little or no difficultly effecting such changes.

“As with all tax policy, the devil is in the detail and therefore we can only speculate as to the practical impact of the changes outlined in their manifesto. So, at this stage, it’s ‘watch this space’ and hope that the waters remain calm in the meantime.”

Rob Curtis founder of Swindon-based digital marketing company The Pursuit Agency, said: “Considering the Conservatives have been in power for so long, I’m intrigued to see how the country will react to this Labour landslide.

“My hopes are that the Labour government will follow through on their promises to create a more inclusive and supportive environment for SMEs, such as investing in digital infrastructure, access to financing and implementing controls of payment terms when working with corporations.

“I feel cautiously optimistic about the future. If these policies proposed by the government can be implemented, it could result in a more robust and resilient economy with developed opportunities for growth and innovation within the SME sector.”