As Sir Keir Starmer assumes office at Number 10, business owners across the country are closely monitoring the new administration’s moves, hoping for reforms that will invigorate the economy, improve skills training, and revitalise the high street.
Theo Chatha, Chief Financial Officer at Bibby Financial Services, has highlighted the necessity for Labour to fulfil its promise on the reform of the British Business Bank and the Bank Referral Scheme. Chatha stated, “The Labour party now has an opportunity to drive economic growth through the UK’s resilient small and medium-sized business community, and to support them in boosting output. But first, they must address key areas of concern for SMEs, and access to finance is an area that requires attention.” Echoing the sentiments of many SMEs, Chatha expressed hope but also demanded concrete action, pointing out that despite existing efforts, the current scheme has been disappointingly ineffective since its inception in 2016. He urged the government to develop a new system involving a broader range of SME funders and commercial finance brokers.
Michael Stull, Managing Director of ManpowerGroup UK, congratulated Starmer’s Labour on their electoral victory and reaffirmed the necessity of a people-first approach to achieving national prosperity. Stull remarked, “As millions nationwide are currently unable to either find, access or participate in work, we look forward to engaging with relevant Ministers across the new government as Labour implements the initiatives outlined in its Plan to Make Work Pay paper.” His emphasis was on leveraging better skills to secure quality jobs that ensure sustainable earnings, work-life balance, and overall wellbeing, aspects he considers crucial for an inclusive and dynamic labour market.
Tina McKenzie, Policy Chair of the Federation of Small Businesses (FSB), applauded the new government, noting the potential for political stability to translate into economic recovery. McKenzie mentioned, “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.” She outlined the necessity for measures that lower the cost of doing business, support investment, and improve payment practices. McKenzie also advocated for a Small Business Bill in the upcoming King’s Speech to enshrine support for smaller firms in legislation.
The Managing Director of business funding specialists Aurora Capital voiced cautious optimism about Labour’s commitment to supporting UK businesses. He welcomed the proposed reforms to the British Business Bank, particularly in aiding startups and SMEs in accessing funding. He commented, “If the new government delivers on its promises, we could see a positive environment in which SMEs and entrepreneurs can flourish. However, as always, the devil is in the details, and we await further information on how these promises will be realised.”
Philip Nothard, Chair of the Vehicle Remarketing Association (VRA), emphasised the importance of focusing on electrification and investment in the motor industry. Nothard highlighted, “The Labour message throughout their campaign and really for the last 2-3 years has been all about investment and growth, and we believe that two of the key areas that would best respond to funding are electrification and motor manufacturing.” He stressed the need for infrastructure to support electric vehicle adoption and competitive support for manufacturers transitioning to EVs.
Paul Tomlinson, co-founder of Cord, underscored the urgency of encouraging home charging for electric vehicles. He pointed out that the cost benefits of EV ownership are undermined by the high expenses of public charging, suggesting that Labour should make home charging more accessible and affordable. Tomlinson stated, “Labour’s commitment to greening the country’s fleet is admirable. But for these targets to turn into action we have make EVs a natural and affordable choice for drivers, not a luxury available to the few.”
IAM RoadSmart’s Policy and Standards Director, Nicholas Lyes, emphasised the need for urgent action to improve road safety and affordability. Lyes remarked, “Motorists are dealing with pothole-plagued roads, expensive pump prices, soaring insurance premiums and worse, progress on reducing serious and fatal road collisions has stalled for many years.” He called for immediate steps to introduce safer, more affordable roads and advocated for Graduated Driving Licences to mitigate road-related fatalities among young drivers.
Amanda Powell-Smith, CEO of Forster Communications, emphasised the crucial role of SMEs in driving innovation and social entrepreneurship. Powell-Smith stated, “Amid intense discussion on policy and the City, the role of SMEs as pioneers is too often forgotten. There are over 5.6 million SMEs in the UK, accounting for around three-fifths of employment and half of turnover in the UK private sector.” She reinforced the significance of recognising SMEs’ agility and flexibility in responding to new business models and solutions that benefit both people and the planet.
The perspectives of various business leaders underscore a cautious optimism towards Labour’s commitments. However, the effectiveness of these initiatives will rely heavily on detailed implementation and continuous engagement with key stakeholders. As the new administration embarks on its journey, the business community remains watchful, advocating for reforms that will bring tangible benefits to the economy, workforce, and broader society.
