General Election Download: What the manifestos mean for business

Our webinar was moderated by John Foster, Chief Policy and Campaigns Officer, joined by Louise Hellem, Chief Economist; Matthew Percival, Director of the Future of Work and Skills; and Tania Kumar, Director of Net Zero.

CBI Chief Policy & Campaigns Officer, John Foster, started the webinar by giving an overview of the ‘air-war’ campaign messages from the two main parties. On the Conservative side, the clear message running through their manifesto like a stick of rock was the need for a plan for the economy. Labour’s manifesto in turn sought to emphasise their commitment to working in partnership with business to deliver growth and wealth creation.

Next up Louise Hellem, Chief Economist, ran through both parties’ commitments around tax as well as their approach to fiscal rules. The Labour Party manifesto includes commitments to the existing fiscal rules of falling public sector net debt and public sector net borrowing to be below 3% GDP by the end of the Parliament. However, Louise highlighted a point of difference to the Conservatives being that under Labour’s rules, whilst all day to day sending costs must be met by revenues, borrowing is allowed for investment.

The labour market – and in particular challenges around shorts and skills – have been highlighted by many firms as a key blocker to growth. Matthew Percival, Director of Future of Work & Skills, highlighted how the Conservatives would likely continue with the agenda they have established in government, such as the continuation of the Lifelong Learning Entitlement, the introduction of the Advanced British Standard, and the expansion of skills bootcamps. The key policy development for them is the commitment to create a of 100,000 new apprenticeships each year, funded by closing what they describe as ‘poor quality’ university degrees. Matthew then talked through Labour’s proposals, which includes commitments to introduce a new Growth & Skills Levy along with a Youth Guarantee of access to training, apprenticeship or employability support for all 18-21 year olds.

Net Zero has been a high-profile focus for debate during the election, with Tania Kumar, Director of Net Zero, explaining the Conservative’s pitch for a ‘pragmatic’ approach to Net Zero, including guaranteeing a parliamentary vote on Net Zero targets. Tania went on to unpack Labour’s Green Prosperity plan, including the role of policies such as the National Wealth Fund in seeking to leverage in private investment.

Finally, all our experts answered questions ranging from thoughts on full expensing, to planning reform, and R&D investment. You can listen to the full webinar, in detail, below.