News and Insights
“Should’ve gone to Specsavers” – can the Labour conference change the optics?
September 26, 2024
The first conference of a party in government for less than 100 days could and should have looked different.
The lead-up to the 2024 Labour conference was dominated by gloomy rhetoric about the state of the economy and the painful decisions ahead, including the controversial cuts to winter fuel payments. This was combined with the scrapping of several infrastructure projects signed up for by the previous government.
Last weekend, freebies scandals and fights at the core of Downing Street overshadowed the government’s policy agenda and the measures already implemented on planning reform, renters’ rights, rail nationalisation, onshore wind, and workers’ rights. Although none of this is likely to be seriously damaging at this stage, it is undeniable that the first Labour government in 14 years had a bumpier start than many would have liked.
To the Labour strategy team, the ‘doom and gloom’ strategy in preparation for the Budget on Wednesday 30 October may have seemed a justified political strategy. However, many are now doubting that focusing almost exclusively on the state of the economy and the tricky decisions ahead is working.
Change of communications strategy?
With the first Budget coming up in a month, and after a King’s Speech only a couple of months ago, there were no major policy announcements. Instead, the conference was characterised by an effort to readjust the messages and to signal that the Government had a long-term plan to lift the country out of its current trajectory of anaemic growth.
Although approval rates are a concern, reassuring businesses and investors was certainly a primary objective of this year’s conference. Chancellor of the Exchequer Rachel Reeves’ speech on Monday, in particular, tried to reset the tone and sent a more optimistic message by confirming that there would be no return to austerity. Her line: “Growth is the challenge, and investment is the solution” was aimed at investors who have started feeling a bit uneasy about the messages and language used by the Treasury and the Prime Minister so far.
Interestingly, Reeves’ speech hinted at the possibility of more borrowing on capital spending and infrastructure, but no increase in income tax, national insurance, or VAT: “It will be a budget for economic growth and investment”.
What’s next?
The Prime Minister must get a grip on internal divisions
The briefings against Chief of Staff Sue Gray highlight a power struggle in Downing Street, which must be resolved if the Government wants to succeed. Relying so much on future growth puts much more pressure on coordination across government departments, and strong and clear leadership is essential.
Plans for a new industrial strategy will be published in October
Rachel Reeves and Business Secretary Jonathan Reynolds announced that the plan would detail how Labour intends to stimulate investment and ensure the UK “speeds ahead” toward net zero. Businesses should pay attention to future developments as a Green Paper and a consultation are expected to be published alongside the strategy.
The International Investment Summit and Budget
The UK-based summit has been announced for 14 October. The aim is to show investors across the world that Britain is open to business. The timing doesn’t seem ideal as it is just two weeks before the Budget. Reynolds is approaching the summit without having appointed an investment minister and a chair for the new industrial strategy council.
Get in touch with FINN Partners public affairs team
Please do get in touch if you have any questions or would like to discuss how the public affairs team can support your business. Contact Carolina Gasparoli, Vice-President, London Office: carolina.gasparoli@finnpartners.com
POSTED BY: Carolina Gasparoli
