INDUSTRY News
reasons; we can see the turmoil across Europe as other countries kick back against EU policies. We should remain friends and improve relationships where we can for the benefit of the economy, but it’s not for political parties to play political gain tactics.” Clean Energy In a marked change to the previous approach to climate change, which became something of a political football for the Conservatives in recent years, Labour’s commitment to promoting green energy is another significant area influencing business reactions. An ambitious environmental agenda already announced includes substantial investments in renewable energy, stricter emissions targets, and incentives for sustainable practices, something which many in our industry will be cheering, not least the line-up for our next lecture in October, the theme of which is sustainability. For businesses, these shifts represent both a challenge and an opportunity. Industries reliant on fossil fuels or with high carbon footprints are bracing themselves for stricter regulations and potential increases in operational costs. Conversely, companies in the renewable energy sector and those developing sustainable technologies are anticipating a surge in demand and investment, viewing Labour’s green policies as a catalyst for growth and innovation. However, that political football will be endlessly kicked around by the (predominantly right wing) media, likely hampering progress. The new administration will need to be very tough to withstand such criticism over the coming years. Taxation fears With growth stagnating for some years the prospect of higher corporation tax is also a worry, but with taxes at the highest level in 70 years and the country teetering on the brink of recession for the last few years, this is unlikely to be a surprise and to some, this is a case of business as usual. Increases in tax liabilities and associated compliance costs may also be introduced, affecting profit margins and necessitating adjustments in pricing strategies and investment plans. Steve Wintle was firm on this point. “I would say we pay enough corporation tax, those that pay it! Rather than increase it we
should ensure all corporations are paying it, no excuses!”
so anything that can raise quality of workmanship and work ethics must be an improvement.”
The combination of these two strategies will concern this sector, which could feasibly increase scrutiny and financial burden, and companies will be strategising on how to mitigate potential impacts. At the time of writing, just after the election, new Chancellor Rachel Reeves has managed to appear both matter-of-fact and vague on these areas for some time, and it is still very early days. After the summer recess, which is likely to be shortened as Labour say they have so much to do, we expect a bit more clarity.
Return to regulation
It’s not all good news though. An emphasis on greater regulatory oversight of key industries, including telecoms, after more than a decade of poor performance, lack of accountability, scandals and corruption will probably mean things get worse before they get better. Companies should brace themselves for more stringent regulations aimed at ensuring fair pricing, consumer protection and data privacy. While these measures are intended to benefit consumers, increased operational costs and complexity for telecom providers may hurt in the short term. Steve Wintle, Head of CNI at Abloy UK was upbeat, however. “If this improves standards it’s a good thing; the telecoms sector I believe has fallen behind some of the other critical infrastructure sectors on physical security standards. We as individuals, business and the countries economics are reliant on resilient communications. It can only be positive.” We are hearing that telecoms companies are being urged to engage more proactively with policymakers to influence the shaping of new regulations and policies though, which will also be a good thing for the industry.
CSG Focus
In other areas, the government is keen to see enhanced corporate social responsibility initiatives, aligning with Labour’s broader social and economic goals to contribute positively to society. Whether companies have the bandwidth (excuse the pun) to take this on as well as everything else remains to be seen; the likelihood is that these will be considered more long-term projects. Whatever happens next, the Labour victory is a likely catalyst for significant change, presenting a mix of promising opportunities and formidable challenges. Ian Nock summed up the mood: “I hope to see execution on all this so that we can grow our way out of the doldrums we have found ourselves in. We hope that the plan to execute converts into actual activity - and soon.”
A closer relationship with Europe
Labour’s approach to Brexit and international trade has been another critical concern for businesses; politically it is still a highly charged subject. During the few years the party has had to tread extremely carefully to respect the democratic vote in 2016, while at the same time pledging a closer relationship with Europe post-Brexit. Exporters will welcome the prospect of reduced trade barriers and more stable relations with Europe, but others fear that new negotiations could prolong uncertainty and disrupt supply chains, impacting planning and investment decisions. Division in the UK remains rife on the topic. One industry insider reflected such diversity of opinion and told us, “The country voted to leave the EU for good
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