In our second General Election Download webinar, we assessed the new government's key priorities, and showed you the areas we’ll be looking to collaborate and challenge on.
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Our webinar was moderated by Alice Grimes, Head of Public Affairs. She was joined by Jordan Cummins, UK Competitiveness Director; Sean McGuire, Europe & International Director; Naomi Weir, Technology & Innovation Director; Alice Jeffries, Tax Policy Manager; and Laurence Raeburn-Smith, Policy Manager in the Future of Work and Skills team.
Alice Grimes, Head of Public Affairs, began with an overview of CBI engagement with the new government, which started well ahead of polling day. We wrote to Permanent Secretaries with a Programme for Government, illustrating the detail and practical steps required to enact the proposals in our Business Manifesto which will instil business confidence and momentum in the economy. Post-election, our Chief Executive, Rain Newton-Smith, sent this work to the new Prime Minister, Chancellor and Business Secretary, and met with the latter at the B5 as well as the new Net Zero Secretary. In all of these meetings, we echoed our members’ key questions: What will your engagement architecture look like? How will your Industrial Strategy work? How will Brand Britain be positioned on the world stage?
CBI UK Competitiveness Director, Jordan, discussed the Industrial Strategy, the centrepiece of the new government’s agenda for business. He noted both the Chancellor’s focus on infrastructure and planning reform in her maiden speech and the civil service’s focus on co-creation – positive signals of their commitment to deliver an Industrial Strategy which learns from the lessons of previous versions.
When asked how the new government will make the UK an attractive and stable investment destination, Jordan pointed to the speed with which they both confirmed a Global Investment Summit in the Autumn and tackled complex issues like planning subject to local opposition. Businesses will be looking, however, at the full implementation of the Harrington Review recommendations.
Next, our Director for Europe & International, Sean McGuire, shared the positive response from international leaders to the opportunity to reset relations with the UK. Our global relationships will likely be defined by continued coordination and cooperation on defence, security and energy matters. In light of the current political challenges across the EU, building trust and having patience will be critical as the new government navigates trade agreements and regulatory alignment on some areas.
The CBI is the Chair of the UK Domestic Advisory Group, and we are working closely with the new Minister for European Relations on immediate changes which could benefit dialogue and facilitate trade.
Naomi Weir, Director of Technology & Innovation, shared that because there is mutual recognition across party lines that technology and innovation are integral to economic growth, better public services and labour market productivity, the policy trajectory may only be accelerated. This is demonstrated in the new Science, Innovation & Technology Secretary’s early signals that the department will be expanded, making notable ministerial appointments, coordinating with the Cabinet Office and HM Treasury, and forming a key part of the Industrial Strategy.
When engaging with the new government on technology and innovation policy, we have echoed members’ calls for a competitive regulatory requirement, tech adoption and support for key institutions. The CBI is also working closely with HM Treasury on scaling innovation investment.
Laurence Raeburn-Smith, who leads on employment rights, led discussion on the Government’s 30 proposals within their New Deal for Workers, or Plan to Make Work Pay. Businesses will welcome a Single Enforcement Body, a Growth and Skills Levy, and more broadly, a commitment to consult widely. However, industry will be keen to see how the government plan to protect against unintended consequences including higher costs, constrained investment, squeezed pay differentials, weakened workplace democracy, and risk of hiring. The Government will likely introduce a Bill and start consultation in the first 100 days, having conceded it will likely not pass in that time, but will make progress on areas not requiring primary legislation. The CBI has set up an Employment Bill Working Group which members can join to contribute to our consultation responses.
Alice Jeffries, Tax Policy Manager, began by welcoming the new government’s commitment to publishing a business taxation roadmap within the first six months: something the CBI has been calling for for a long time and which will offer certainty to businesses and the economy. It will likely include a flexible approach to corporation tax to ensure international competitiveness and continuation of full expensing. However, we are working with HM Treasury to seek clarity on behalf of industry on what new systems for business rates, tax compliance, R&D credits and investment allowances will look like. The CBI has a number of tax working groups analysing the proposals ahead of a likely fiscal event in the Autumn.
Attendees asked questions around inward investment, the National Wealth Fund, and the potential impacts of employment reforms.
