With a new Labour Government elected yesterday, much of the focus from the new Prime Minister and his Chancellor during the last seven weeks of campaigning has been on growth, arguing that it is the only way for the 海角视频 economy to generate the resources necessary to deal with major challenges over the next few years
However, there has been little discussion of some of the detailed plans that Sir Keir Starmer and Rachel Reeves have been developing to support 海角视频 business and it is worth reviewing some of the key pledges in their manifesto as it will form the foundation for economic development for the rest of this decade.
All leading economies, bar the 海角视频, have an industrial strategy to provide a structured approach to driving economic growth, fostering innovation, and ensuring long-term competitiveness and sustainability in key sectors. For those of us who believe such an approach is long overdue, it is good that a mission-driven industrial strategy will now be created which will leverage Britain's strengths in research, professional services, advanced manufacturing, and creative industries.
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Another important commitment will reverse the 海角视频's low investment levels by leveraging public investment to de-risk and attract private investment. The key to this is the creation of a National Wealth Fund, capitalised with £7.3bn, which will support growth and clean energy missions, targeting transformative investments across the country. The fund aims to attract three pounds of private investment for every pound of public investment and will focus on port upgrades, new gigafactories, upgrading the steel industry, carbon capture technology, and green hydrogen manufacturing.
An unintended consequence of such a large majority in the House of Commons will be that of stability for businesses to invest in their future and that of the nation. Following the uncertainties surrounding both Brexit and the Covid pandemic, there has been a reluctance by 海角视频 firms to spend money and they currently hold substantial cash reserves of around £900bn, one of the highest levels of corporate liquidity on record. Given this, one of the first things this new government should be doing is to look at ways to unlock this finance to fund future investments aimed at economic recovery and growth.
Businesses will be relieved that the new government aims to provide further stability and certainty in business taxation by capping corporation tax at 25% for the entire parliament with a new tax roadmap that will include a permanent full expensing system for capital investment and annual investment allowances for small businesses. The business rates system will also be changed to level the playing field between high street and online giants, something that is long overdue and will boost smaller retail businesses.
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A ten-year infrastructure strategy will align with industrial and regional development priorities to address the 海角视频's crumbling infrastructure as well as a commitment to achieve full gigabit and national 5G coverage by 2030 to boost connectivity. A new National Infrastructure and Service Transformation Authority will also set strategic priorities and oversee project delivery with changes to planning enabling the go-ahead for key projects to develop roads, railways, and reservoirs. Modernising transport infrastructure will also include supporting the transition to electric vehicles with increased charge points and reforming railways by bringing them back into public ownership to deliver reliable, affordable services.
However, in terms of infrastructure, probably one of the most important commitments is the pledge to tackle the housing crisis through building 1.5 million new homes, prioritizing brownfield development and strategic greenbelt land designation and developing more opportunities for first-time buyers to enter the housing market.
Not surprisingly, one of the key reforms will focus on boosting employment, including support for disabled and health-affected individuals and a focus on youth employment and skills development. Legislation will also be introduced to improve working conditions, including banning zero hours contracts, and enhancing parental leave and sick pay. And to deal with high levels of economic inactivity, it is expected that the current points-based immigration system will be reformed to reduce the long-term reliance on overseas workers while addressing skills shortages through local training and improved working conditions.
Surprisingly perhaps, there is little detail on how innovation will be supported beyond a desire to support the AI sector, establishing a National Data Library, and providing ten-year budgets for key R&D institutions. Whilst there is a pledge to create a secure future for higher education and the opportunities it creates across the 海角视频, there is little detail on how it will solve the current financial predicament facing higher education. Given the important role of universities not only in boosting innovation across the country but in training the workforce of the future, having a solution to this must be a priority over the next few months.
Similarly, its plans for small businesses seem to be limited to addressing late payments, improving export guidance, reforming the British Business Bank to support regional growth, and changing procurement rules will be reformed to give small businesses better access to government contracts. In fact, there seems to be very little detail on boosting entrepreneurship given that it will be the key to increasing economic growth in every part of the 海角视频.
However, the good news is that the Labour Party did release a report last year entitled “Start-Up, Scale-Up: Making Britain the best place to start and grow a business” which looked at a number of key areas including business incentives, access to capital, encouraging more spin outs from universities, and how to make the most of entrepreneurial potential across the whole country from a more diverse range of founders.
Like all new governments, there are going to be some serious challenges ahead in addressing some deep-rooted problems. But if, as its leaders have been stating, growth is critical in dealing with these problems, then the best way to do that is by creating more entrepreneurs, boosting innovation, and developing sustainable growing businesses in every part of the economy.