Sunday, December 22, 2024

‘They need to be brave’: business leaders react to Labour’s victory

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Greg Jackson, CEO and founder of Octopus Energy

Greg Jackson Photograph: Octopus Energy/PA

This result is a landslide for the green economy. There’s hundreds of billions of pounds in capital waiting to come into the UK’s green energy sector – but in recent years the political instability in the UK means investors have lacked the confidence to make this happen.

In the run-up to this election the Labour party spent a good couple of years speaking to business leaders in the energy sector, and across the economy, about their concerns. The amount of dialogue they have had means they know what business needs, and they now have the parliamentary majority to deliver it.

This is a golden opportunity for a Labour government to deliver bold reforms which can unleash green growth. And the sooner they start, the sooner these changes can bring benefit to the UK. Planning reform is arcane and complex and challenging, but this is the key to kickstarting growth.

Margherita Della Valle, chief executive of Vodafone Group

Margherita Della Valle Photograph: Vodafone/Reuters

The new government is right to focus on growth and boosting investment. It is also good to see that Labour will place investment in infrastructure at the heart of its industry strategy. Understandably, with the UK’s stretched public finances, there will also be a greater focus on the private sector to support the much-needed injection of investment to fuel this growth.

Underpinning the potential of so many different sectors are networks and connectivity. Yet at a time when network infrastructure has never been more important to the economy, the UK is falling behind. Labour’s manifesto rightly recognises the issue through its commitment to “national 5G coverage by 2030”.”

Mick Whelan, general secretary of train drivers’ union Aslef

Mick Whelan Photograph: Andy Hall/The Observer

The opportunity to give hope and aspiration to millions, after a decade and a half, cannot be underestimated. There is a massive task, with 14 million in poverty after 14 years of economic incompetence. This Labour government can make work pay, grow the economy, and give ordinary people their voice back.

Closer to home, it must grow green integrated transport, rather than protecting the failed private interests of a quarter of a century of rail privatisation.

We look forward to early discussions on resolving the longest rail dispute in history. Aslef expect nothing, but naturally hope for a resolution. And we think, though we don’t know, that it’s possible. The Tory government was obstructive, effectively acting as puppet master to the train operating companies. If this Labour government allows us to deal with the employers, without their hands being tied, anything is possible.

Jennie Daly, CEO of housebuilder Taylor Wimpey

Jennie Daly

Housing delivery has a vital role to play in our society and in unlocking economic growth across the UK through investment, not just into much-needed energy efficient new homes, but in the associated investment in community infrastructure such as schools and amenities, and local transport infrastructure.

A decade-long problem of under-resourcing in the planning system and lack of ambition at all political levels has driven a rapid decline in both new housing development and planning consents across the country, and so we welcome the Labour party’s longstanding focus on the reform of planning policy and look forward to working closely with them to enable the delivery of critical new housing.”

Alastair Currie, CEO of events equipment hire group SLX

Alastair Currie

Quite frankly, [the past few years] have been chaotic, I’ve felt very lonely, and on my own [as a business], and you just have to deal with what you can control in front of you. I think we’ve got to have a change. And I sincerely hope that it does make a difference.

I know it’s not going to be quick, because there are so many calls on government funds with the health service and education. I just think that we need a longer, more strategic plan for our relationships with Europe. It seems crazy not to be more open in a market that we’re so close to.

And it’s really been driven home to me over the last six months [working on the Paris Olympics], just how difficult we’ve made life for ourselves. It just doesn’t help with relationships, either, because it creates an awkward divide.

From the new government, I would love better European relationships and I think some stability around taxes for business would be good. And if there could be a squeeze on the interest rate, that’d be amazing too.

Andy Higginson, chair of JD Group and of the British Retail Consortium

Andy Higginson Photograph: Emma Slater

We hope for but don’t expect a bit of boost from the arrival of a new government. The situation isn’t great in terms of the economy and they need to be brave to tackle some of the issues.

I was impressed by [shadow chancellor] Rachel Reeves and her perspective on City regulation and the need to get that side of the economy driving. The investing environment in the UK is weak and banks are off the pitch for a lot of small and medium-sized businesses. The stock market is weak in terms of valuations and the amount of money flowing into things. I think with her economist background she seems to have a good plan for that.

Labour have said they will look at business rates and all retailers are looking at that with some hope. I think they know it’s a distorted tax in sense that it is old and out of date and needs adjustment to create a level playing field.

On workers’ rights, we employ a lot of people at the lower end of the pay scale and for them to be a bit better-off is good. What we don’t want to do is affect the competitivity of business, and Labour have tried to reassure on that. I am hoping the reforms will be sensible and not drag on any of the good things in the economy like flexibility.

Phil Urban, CEO of pubs and restaurants group Mitchells & Butlers

Phil Urban

All changes of government bring opportunities and challenges that businesses have to take advantage of or overcome. At M&B we have not spent much time overthinking what a Labour government will mean other than looking at their manifesto. We will cross the bridges as they arise, and seek out how to optimise all the changes they make.

In terms of hopes, we would like to think they will recognise the value of the hospitality sector and recognise that if they give us a break through business rates reform, a reduction in employer national insurance contributions, speed up the planning process, and ideally bring VAT in line with Europe, then the sector will thrive, investing as it does so and creating jobs.

Getting some stability and certainty can only help, so settling the election early has been a positive outcome.

Paul Thwaite, CEO of NatWest Group

Paul Thwaite

Growing our economy to help increase prosperity and raise the living standards of people across the UK is, rightly, a priority for our new government. The financial services sector will be a crucial partner if we are to achieve this shared ambition.

We welcome the government’s commitment to work with the private sector through long-term policies such as the National Wealth Fund and a modern industrial strategy.

To support our economy, we also need a competitive banking sector. We have a strong track record of high regulatory standards and consumer protections, and this must continue. However, I believe there are practical reforms in areas like fraud, competitiveness and regulation that would better enable banks to support customers and promote investment.

I look forward to working with the government and across industries to make meaningful progress on critical issues that will help to create jobs and prosperity in every region and nation of the UK.

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