Now that the dust has settled and the election is over, businesses will be eager to see progress on the manifesto promises. For one business sector, things are already potentially looking better. Newly appointed Chancellor of the Exchequer Rachel Reeves has announced her intention to reform planning rules and give local authorities annual quotas for new homes.
Business groups are hopeful that the new Labour government will prioritise kick-starting growth. Central to this, according to PwC, is for the new government to evolve “into a balanced, robust relationship” through greater interaction not just with business leaders and ministers, but also with local government, planning authorities, industry bodies, trade unions, and educators.
Ed Rimmer, chief executive at Time Finance, has called on the new Labour Government to “keep the promises it has made to SMEs by exposing late payers, unlocking finance for businesses, assisting businesses in marketing effectively, encouraging investment, and developing new trade strategies.” An overhaul of business rates was frequently mentioned both before and during the election, though the new government has not yet specifically addressed this.
There have also been calls for the Chancellor to resurrect a strengthened version of the Office of Tax Simplification, which was abolished in 2022. It is argued that this is needed to tackle the tax traps and cliff edges that complicate the tax system and distort incentives in the economy.
Clearly, the Chancellor has a lengthy “to do” list, but are there other issues businesses consider urgent?