CW Growth Hub CEO assesses Labour’s manifesto promises to unlock the UK’s growth potential
Following Labour’s overwhelming success in the General Election, Coventry and Warwickshire Growth Hub CEO Craig Humphrey assesses its manifesto promises to unlock the UK’s growth potential.
It’s less than a week since the new Government was ushered in and while Labour’s slogan throughout the election campaign was ‘change’, it’s flipped that to ‘growth’ very quickly since being elected.
Labour pledged three main pillars to improve the economy in its manifesto for change based around growth, stability, and skills which will resonate with the business owners and senior management teams that we engage with through the Coventry and Warwickshire Growth Hub.
And, with such a strong majority, the new Government does – on the face of it – offer stability for the next five years to deliver against the pledges in their manifesto.
The stock market reaction to Labour’s victory and to subsequent policy announcements is also a source of reassurance from that point of view.
I have highlighted in the past the importance of the UK producing an Industrial Strategy, so I am delighted that the new Government is creating a comprehensive ten-year plan, which gives businesses and investors a framework in which to operate. And it must be a national plan that augments regional growth.
A common characteristic of a growing economy is the need to focus on skills, which was referenced in Rachel Reeves’ first speech as Chancellor and has been emphasised by Richard Parker, the new Mayor in the West Midlands.
High growth areas have a highly skilled workforce and we will need to upskill people to achieve growth but companies will need to be confident of growth to provide the opportunities within the economy and make the investment into training necessary.
Talent retention and resisting the draw on that skilled workforce to other locations will be key and our universities and colleges will play an important role in both attracting and refreshing the talent pool available, especially where there are trends towards an ageing population.
Amongst early announcements there has also been a focus on reform of the planning system to unlock development across the UK for housing, infrastructure, and employment, which will be a key driver in unlocking growth.
To deliver on its plans, Labour will need to work in partnership with the private sector and the new Chancellor, Rachel Reeves, recognises this. She has already vowed to work hand-in-glove with businesses as private sector investment will be vital to deliver the growth needed to create the fiscal headroom to fund investment into our public services.
The National Wealth Fund has been launched which will allocate £7.3bn of funding through the UK Infrastructure Bank for investments in key sectors and to be the catalyst for private investment.
It is encouraging that there is going to be a reform of the business rates system which is long overdue as it can be a real drag on our town centres but we wait to see what the new system will look like and how it will be ‘fit for the 21st Century,’ as the Government suggests.
For us, in the regions, it is interesting to note that the multi-year funding settlements for Local Government has been promised, which is something I welcome.
Again, this would offer stability, certainty and confidence and would allow organisations such as the Coventry and Warwickshire Growth Hub to be able to plan further ahead for the way we deliver support rather than waiting each year to see what level of funding we will be working with.
We will be an important lever for growth here in Coventry and Warwickshire and I have absolutely no doubt that we, and the wider region, can make a positive impact when it comes to delivering for the economy, which will support the Government’s short, medium and long-term ambitions.
