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The State of Integrated Care Systems: Finances
The State of Integrated Care Systems: Finances

Archive for the ‘WA Public Affairs’ Category

Liberal Democrat Conference 2025: Ready For Action?

The Liberal Democrats entered into this year’s conference in Bournemouth as the third largest party in Parliament, having won 72 seats at the last general election, and with stronger representation on parliamentary scrutiny bodies than other smaller opposition parties. But recent weeks have seen difficulties – criticism that messages are struggling to cut-through, with Leader Ed Davey’s stunts being cited as an unhelpful distraction, and a membership keen to be taken seriously. The critical question is now where Davey will focus over the coming months to strengthen the party’s position and properly capture the opportunity held by a future election.

Discussion at fringe events focused on the fact that despite positive action from the Government in some areas – including on the NHS and publication of the 10-Year Health Plan, which Health and Social Care Spokesperson Helen Morgan described as including “a lot of good Lib Dem stuff” – Keir Starmer is struggling to deliver against Labour’s ambitions. But are the Lib Dems ready to step into the breach?

Below are my key takeaways from my time in Bournemouth for WA Comms.

A party struggling to meet potential with action

During a session with ReformWatch (Ed Davey’s scrutiny board, bringing together local Liberal Democrat leaders in areas where Reform has taken control), panellists remarked on the need to deliver an alternative offer to voters. Members mused on whether MPs should focus efforts towards local party engagement vs speaking out in Parliament.

And yet, there was a distinct lack of excitement about what a Lib Dem vision for change would look like. On health, there seems to be increasing noise on the need to show a detailed position beyond just a view on social care reform – especially with this now being taken forward via Baroness Casey’s cross-party Independent Commission. Helen Morgan remarked on the need for the 10 Year Health Plan to go further on areas such as mental health – is this an area where a Lib Dem proposal could be set out to voters?

On the issue of Reform more broadly, discussion at conference highlighted clear concerns that Farage’s party is dominating media coverage and delivering cut-through with voters. Davey refused to confirm which other parties he would form a coalition with – aside from Reform – if the Lib Dems were once again to hold the power to form a government at the next election.

Business engagement

Lib Dem conference is traditionally less business-focused than Labour and Conservatives, and more an opportunity for members to come together.

However, this year the Lib Dems have sought to demonstrate that they are not ignorant to the needs of business. In response to a question on the current life sciences landscape, Helen Morgan responded that ‘we need to think hard about how to make the UK an attractive place to do business’, describing the loss of industry investment in the UK as ‘a disaster’ from a patient perspective.

Support for engaging with business also came through in Davey’s public call to UK businesses to join the party’s fight against Reform: “If you want to stop Reform, if you love your country, come and join the Liberal Democrats, come and talk to us. Ideally support us financially as well.”

Sector-specific policy discussions included:

Future engagement

We understand that the Lib Dems are actively in the process of policy development. Shaped by party members and spokespeople, policy is reviewed more frequently than the standard 5–10-year cycle. A new Policy Work Programme is currently underway, which will lead to the commissioning of a series of working groups – responsible for gathering external evidence from stakeholders (from Q4 2025 into Spring next year).

This process – combined with the fact the Lib Dems have considerably more MPs on select committees and Bill Committees than other opposition parties and a strong presence in the House of Lords, and with all to play for when it comes to a future general election – means engagement with the party remains important.

Looking forward

The phrase ‘holding feet to the fire’ rang throughout the conference halls – but who’s feet this refers to remains unclear. Do the Lib Dems continue to take on Reform (positioning themselves as a more moderate alternative perspective), the Conservatives in their Opposition role or take on the Government to try and win more Labour seats at the next election?

The Lib Dems understand they need a strong, bold position to cut-through. They just don’t seem to currently know exactly what it is, but door to ideas is certainly open!

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Reform UK Conference 2025 – “The Next Step”

Today, Reform UK announced the defection of Former Conservative Shadow Minister Danny Kruger MP. Kruger has been one of the most prominent voices of the right of the Conservative Party in recent years and was hailed by some commentators as a potential future leader of the Party. Announcing his switch, Kruger declared the Conservatives as “over”, stating that Reform bears the “new torch of conservatism”. The party has immediately tasked Kruger with the job of leading Reform’s unit focusing on preparations for government, which will be no easy task.

There is no doubt that the Party continues to dominate the political landscape, with the populist party holding a consistent lead in the polls. However, there are questions over the depth of Reform’s policy platform and its viability as a party ready for Government.

Reform attempted to answer these questions at its party conference which was held in Birmingham last week. Over 5th-6th September, an estimated 6,000 delegates descended on the NEC for what was titled “The Next Step”.

I was on the ground for WA Comms and below are my key takeaways from my two days in Birmingham.

A party atmosphere – with controversy

The mood on the conference floor was buoyant. The structure mirrored that of other parties, set-piece leadership speeches supported by a limited fringe programme. But the real energy was in the ‘Members’ Village’ where regional stalls bustled with grassroots activists swapping campaign tips and celebrating local successes over a beer.

Farage closed the event with a call for unity and “discipline”, trying to present Reform as a professional outfit focused on assuming power. Yet that image was dented when controversial cardiologist and anti-vaccine campaigner Aseem Malhotra was given a keynote platform. His conspiratorial remarks forced Reform’s leadership into an awkward retreat, having initially claimed he was advising on health policy.

Levels of business engagement mixed

Unlike Labour or Conservative conferences, corporate presence was minimal. JCB, Heathrow Airport and Airbnb sponsored parts of the programme, but in general large firms stayed away. The absence of a large-scale business exhibition underlined the caution many companies feel about publicly associating with Reform. Party figures nonetheless urged business to engage with their developing platform, emphasising that the party open to engagement as it develops its policy platform.

Policy taking shape

Across panels and fringes, speakers claimed Reform would deliver economic growth by reducing regulation, cutting wasteful government spending and curbing immigration, though concrete policy detail remained limited. A new policy team led by Zia Yusuf, Reform’s Head of DOGE, was announced, and it has been tasked with shaping the Party’s wider platform.

Key influencers and external voices starting to emerge

Sympathetic think tanks played a visible role. The Growth Commission and Prosperity Institute both featured prominently, while the Centre for a Better Britain, led by Dr James Orr, has emerged as the key hub shaping Reform’s election platform.

Sector insights

Looking forward

There was a dual narrative emerging from the conference. On the one hand, Reform is energised by momentum and a highly motivated grassroots base. On the other, the party faces the challenge of balancing its appeal as Westminster ‘outsiders’, with the need to broaden its reach to more mainstream audiences. While Reform is currently riding high in the polls and some projections even suggest it could be the largest party in the House of Commons, based on current voting intention translation to a general election, the next election is still some way off. Sustaining this momentum, and translating it into durable support will be a critical test for the party.

For business, the takeaway is clear – Reform’s direction of travel is set, but the detail remains uncertain. A new policy development team is being established, and the party is actively seeking fresh thinking and ideas to shape its populist agenda. Reform knows the direction in which it wants to go, but it wants support in helping to get there. For firms, this signals an opportunity to engage early, before positions harden and the door closes.

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On a mission: what did we learn from the Clean Power Action Plan?

Is it achievable to secure a clean power system by 2030? And even if it’s not achievable is it a helpful target to have in place to spur on the right decisions? That’s a question that divides policymakers and the energy industry.

Today the government sought to answer it by setting out their Clean Power Action Plan, following recent advice from the National Energy System Operator (NESO).  So, what did we learn?

More of an outline of a plan than a detailed blueprint

This is a welcome plan that provides some important clarity on the government’s direction of thinking, developed by a new team in just a couple of months. However, it’s important to recognise that it doesn’t provide all the answers, and effectively sets out the crucial building blocks to get to clean power rather than a detailed blueprint.

This is reflected by the lack of a definitive ‘pathway’ – signaled by Head of 2030 Mission Control, Chris Stark in advance – and instead setting out capacity ranges for different technologies. Government – rightly – wants to retain flexibility for commercial negotiation and upcoming auction rounds.

Across many of the seven areas set out in the Action Plan, there were a series of consultations and policy processes confirmed – some newly announced, others already in train – from reforming the CfD auction process for renewables to developing a Low Carbon Flexibility Roadmap in 2025.

Decisions in 2025 will determine how on-track this plan remains

The energy industry likes to coin every year as a critical year for reaching net zero. But it’s not unreasonable to argue that 2025 presents a cross-roads. A number of expected decisions next year will determine the extent to which achieving Clean Power by 2030 is feasible.

As the Action Plan outlines, a bumper renewables auction is essential to stand any chance of meeting offshore wind targets. Many of the reforms announced today will support efforts to maximise procurement of future capacity. But with the Spending Review being delayed and continued constraints on public spending, ensuring the Treasury are fully aligned with this ambition will be the key.

On the other side, today’s Action Plan does provide some clarity over a timeline on market reform. The investment risk that generators fear has been well articulated. This decision will provide clarity on whether the government’s ambition is to do everything in their power to meet 2030 Clean Power or to create a perfect market, regardless of the implications this may have.

Genuine questions over affordability remain

Ministers have championed the shift to Clean Power as bringing down bills for consumers. Today’s Action Plan however, notably doesn’t provide conclusive clarity on the costs to reach Clean Power by 2030, and how they compare to meeting it at a different pace. NESO did consider this but have faced questions – including relentless scrutiny from the Opposition – over the assumptions they have used.

Today’s Plan doesn’t answer them and expect to see this challenge increase into the new year. Primarily this is a political challenge for Labour. But it also poses questions for industry, who will face continued questions about the cost of the transition, and who carries this.

Fundamentally, scepticism over the affordability of the transition raises questions over its sustainability and the public buy-in for the shift to clean power. The experience from the US shows that the electorate will judge a government on how they feel their living standards have changed during the political term.

Job numbers from socio-economic reports are helpful but on their own they are not enough: the public needs to genuinely see prosperity in their communities and the number on their energy bill coming down.

The focus on power decarbonisation by 2030 is absorbing attention, but it’s not the only game in town

The Action Plan reflects the political, policy, regulatory and industry focus on getting to 2030. The plan to prioritise planning consenting and grid connections for 2030 projects reflects this. If your project is identified as being able to contribute to 2030 you are in an incredibly strong position, if it isn’t you will face an uphill battle.

This presents challenges for two different groups within the energy market. Firstly, developers and projects whose projects and technologies are not going to play a role in this decade, but will be essential beyond that. That includes some CCS projects as well as emerging technologies, particularly in the nuclear field. Secondly, those organisations in the energy sector whose solutions are aimed at other parts of the market, whether that’s decarbonising heat, industry, or supplying power to consumers.

Both face a similar – and real – challenge. The focus of the government machine is on meeting the Mission, meaning that things that sit beyond this risk getting less attention or being deprioritised in policy processes. The welcome news is that there is policy action on the horizon that many of these organisations need to engage in, for example the upcoming Warm Homes Plan.

It also reiterates the need for impactful, engaging campaigning – showing off innovation, leaning into real people – to create excitement about what can come next, and substantial, evidenced thinking to show the critical decision points that will enable this.

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Low bandwidth and a call for patience — four takeaways from Labour Party Conference

A packed Labour Party Conference agenda of fringe sessions, speeches, receptions and dinners provided an opportunity to assess Labour’s first two months in government, and better understand their future priorities. So, what did we learn?

1. The party’s over

There has been little time to revel in the resounding election success of the summer. The 2024 Labour Conference felt more serious, and flatter than the 2023 iteration when the party was in opposition.

This should come as no surprise given long ministerial hours, an intense election campaign, and the deliberately pessimistic messages coming from leadership.

With the enormity of the task at hand now clear to all, and a drive to show they are a serious, responsible government, the forward looking, more visionary approach the party had set-out has been diminished.

2. Breaking down inter-government siloes won’t happen overnight

In the run-up to the 2024 election Labour spread the word far and wide that they would be a ‘mission-led government’. At Conference this remained a common theme with ministers regularly referencing the multiple mission board meetings they are attending. Although in their infancy, the new boards have clearly been unanimously welcomed and are providing important channels for departments to communicate.

The challenge that awaits, and where the success of mission boards will be judged, is how effective they are at core decision-making. Will these new ways of working be strong enough to overcome the age-old cross-department battles that will surface on budget allocations and prioritisation of activity.

The first tests of this are already on the horizon with the autumn budget and spring spending review.

3. MPs bandwidth to engage with industry is low

One of the key outcomes of the 2024 election was obvious at Conference, the fact that 231 out of 404 of Labour’s MPs elected in July are completely new to Parliament.

Many of these MPs spoke about adjusting to life in Westminster, balancing the role of a legislator, campaigner and employer, all at the same time.

What was clear hearing these MPs speak is that just two months after their election, they are already laser focused on re-election in five-years. They know that to achieve this, popularity with their constituents is vital.

Given this focus and with casework at record high levels (one MP said they had received 8,000 emails since the election, half of which are constituency casework), this increasingly time-poor cohort of new MPs are deprioritising engagement with industry, even if it aligns to their personal interests.

To stand any chance of engaging with new Labour MPs effectively, industry need to ensure constituency issues are a central part of any outreach.

4. Patience is required

One of the key Conference messages was ‘bear with us’. This is a government that is not yet in full flow. A combination of delays in the appointment of some special advisers, ministers getting to grips with new briefs, a short amount of time where the House of Commons has been sitting and the avalanche of inbound inquiries has contributed to this.

The coordinated effort from Labour’s top team to ask for patience demonstrates their recognition of industry frustration at a lack of engagement, particularly given the emphasis the party had given to ‘open engagement’ with business pre-election.

The question is how long they can ask for patience with industry who have spent the best-part of a year focusing on engaging with Labour and awaiting the opportunity to support their mission-led government.

With a pivotal few months on the horizon, Labour will be hoping to build on discussion in Liverpool and demonstrate they are making inroads with engagement and policy that will impact the long-term changes outlined in their manifesto.

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A tale of two Cities: Labour’s vision for financial services

A tale of two Cities: Labour’s vision for financial services seeks to balance stability and reform

Labour’s Shadow Chancellor Rachel Reeves and Shadow City Minister Tulip Siddiq this morning showcased ‘Financing Growth’ – the party’s long-awaited review of financial services – to over 400 private sector leaders at its annual business forum. The scale of the event is reflective of the extensive engagement that the Labour Treasury and Business teams have conducted with the private sector over the last few years. The advisory panel that fed into this review is made up of leading members of the industry, policy and regulatory spheres – it is clear that Labour officials have put in the hard yards in engaging with the City on this work.

That said, while there are some significant new policies announced in the document, many of the key areas of focus will not come as huge surprise to those who have monitored the Shadow Treasury team’s comments over recent months. This stays true to Reeves’ stated aim of providing stability and security with her proposals, avoiding any major upheaval in policy to promote investor confidence and growth.

Expected measures to foster ‘stability and security’

This continuity is offered in Labour’s policies around consumer protection and financial inclusion; its plans for supporting and promoting the UK’s fintech sector; and in leveraging green finance as a crucial part of their wider environmental initiatives.

Increasing levels of consumer financial protection – particularly the regulation of the Buy Now Pay Later (BNPL) sector – is an area which Labour has signposted for some time it will move quickly on should it win power. Labour has used the absence of regulation brought forward on BNPL as a stick to beat the government with over the last few years – as such, Siddiq and Reeves commit in the report to bring forward their ‘industry-approved plan for regulation’ quickly after the election.

The same is true of the proposals for the fintech sector. With Ron Kalifa on the advisory panel of this report, it is no surprise to see Labour seeking to build on many of the measures suggested by Kalifa in 2021 to increase the UK’s international competitiveness. These range from using its AI Strategy to encourage use-cases of the tech in financial services, to supporting the Joint Regulatory Oversight Committee (JROC) in delivering the next phase of Open Banking, and ‘working with regulators and industry’ on a new roadmap for Open Finance.

New announcements on regulation and savings have the potential to spiral

Whilst it is true that many of the policies set out in the report have been previously trailed, there are several new announcements that may have significant implications for businesses across the sector.

The first of these to highlight are a series of possible regulatory reviews and reforms in the name of ‘improving efficiency and promoting innovation’. Labour confirmed it will review how the entire range of City regulators operate in conjunction with one another, identifying areas of overlap and gaps in oversight. This will be supported by a major FCA ‘streamlining’ consultation with industry to align with the Consumer Duty, and a new Regulatory Innovation Office that will monitor performance, introduce new progress metrics and promote transparency. Clearly, a sector-wide review of regulatory mandates has the potential to be extremely impactful: inputting into these consultations and monitoring how the new watchdog shapes the industry-regulator dynamic will be critical for both established players and smaller innovators alike.

Another area of focus for Labour in the review is on measures to ‘reinvigorate’ capital markets and pensions – both from a consumer outcomes perspective and to channel more private capital into growth sectors of the economy. To this end, Labour today committed to undertaking a major review of the savings landscape, consulting across the whole industry and consumer group representatives to not only consider how the public can increase returns and be better protected, but also to encourage greater investment into UK-based assets. This was supplemented by the announcement of measures modeled on the French ‘Tibi’ scheme for Defined Contribution (DC) funds, who can opt-in to invest a proportion of their assets into UK growth assets.

While the exact scope of the review still needs to be clarified, it’s clear that like the current government, Labour recognises the potential value of private capital in generating the revenue it will need to achieve its policy priorities – Reeves speaks frequently about the ‘1:3 public-private investment ratio’ that she will aim for should she become Chancellor. It is clear Labour are exploring all possible policy levers it can pull in order to help achieve this.

Focus on diversity connects FS to the wider Labour policy platform

Finally, it would be remiss to not highlight the focus Labour has placed upon encouraging diversity in the UK’s financial services sector as part of this review – not only in the workforce itself but also geographically. Alongside introducing new diversity and inclusion guidance for the PRA and FCA to hold firms to account on their hiring pledges; and codifying two additional KPIs for the British Business Bank to channel investment into women and ethnic minority-led start-ups; Labour has placed a heavy emphasis on growing regional financial centers outside of London and Edinburgh. This leans on implementing the recommendations of both the Harrington Review into foreign investment and Labour’s own ‘Start-up, Scale-up’ – applying the same regional lens to the Labour FS agenda that exists across nearly all other aspects of the current party policy platform.

With this in mind, firms that are able to demonstrate how their work helps alleviate regional economic imbalances – avoiding mentioning the dreaded ‘levelling up’ – will be at an advantage when engaging with the Labour Treasury team on any variety of policy issues.

Wrap-up

In sum, much of ‘Financing Growth’ was unsurprising by design – in keeping with the regulatory direction of travel in the sector and reflective of the many conversations Labour has had with those in the City over the last few years. However, there are several new policies contained in the report that, given their as-yet undefined scope and ambitious nature, have the potential to pose challenges for firms across the sector and significantly impact the public. Gaining more detail from Labour on these proposals, and shaping the policy development process where possible, will therefore be critical as we move closer to the next election.

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Government pushes on with plan for cryptoassets regulation – but questions remain for business

The Government’s response this week to the consultation on the future regulatory regime for cryptoassets represents a significant, positive step forward – matching other markets around the world – in establishing a regulatory framework to allow crypto and blockchain to flourish as a driver of growth in the UK fintech sector.

The document released this week set out the Treasury’s plan to implement, following industry feedback, many of the proposals for the future regulatory framework of the sector outlined in April this year. The areas covered by the consultation range from fundamentals like the definition of cryptoassets and the broad legislative approach; to plans to regulate core activities such as custody and lending; and to bring centralised cryptoasset exchanges into the financial services regulatory perimeter for the first time.

What the Government is aiming to do with the proposed framework is manage clear tensions in designing policy that improves consumer outcomes; encourages investment and international competitiveness, all the while protecting against market failure – driven by high profile examples like the collapse of FTX. This is a tricky balance to strike. Heading into an election year, the plan outlined this week still has a number of unresolved questions that will need to be worked through with industry and addressed before implementation.

Lack of clarity on timescales

The Treasury was keen to make clear the consensus that exists across the industry for the plan presented earlier this year – highlighting that nearly 80% of respondents were in ‘broad agreement’ – indeed, many of the proposals set out in the original framework earlier this year were taken forward without any modification. This has seen a number of the issues that were raised by critics unaddressed – for example how crypto gambling will be dealt with under the new regime.

In addition, the document was relatively light on detail in terms of when the critical ‘phase 2’ secondary legislation, that will give the Financial Conduct Authority (FCA) its new powers to regulate the sector, can be expected, nor on the exact mechanisms for how this will be added to the statute. It was confirmed that legislation would be “laid in 2024” subject to Parliamentary time. This timescale, while offering a general idea of when we can expect forward movement, becomes murkier when you consider the political uncertainty (and crucially, the loss of Parliamentary time) that will occur due to the general election expected next year. Given the state of the polls, it certainly makes Labour’s position on the future regulatory framework equally as important as that of the current Government.

Where Labour stand

Speaking of the Opposition: shadow Treasury ministers were keen to stress to businesses at Party Conference last month that they would not be ripping things up and starting afresh with the Treasury’s current proposals for crypto and the wider fintech sector. Some concerns were raised by shadow ministers as to whether proposals go far enough on consumer protections regarding the promotion of cryptoassets – reflecting Labour’s focus on this issue across many policy areas.

As it stands then, the consensus is that the direction of travel on crypto will remain broadly the same. However, should an incoming Labour government, with this added focus on protecting consumers, inherit a half-finished regulatory regime in late 2024, there remains the risk that the checks and balances on firms contained within the proposals could be made more stringent.

Any additional measures placed upon the FCA in the name of consumer protection (on top of the already greatly expanded powers handed to the regulator as part of this plan) would run the risk of overburdening an already-stretched regulator and adversely impact all firms in the space – not just those who are subject to the specific consumer-facing measures that Labour may seek to introduce. This is a risk firms should consider highlighting to the Labour Treasury team as they consult with business on the future of fintech.

Further friction between innovators and traditional players to be expected

From a wider industry perspective, there remains questions around how new and innovative financial products would be prioritised and onboarded into the proposed framework as they emerge. The lack of detail here is critical in terms of how it relates to recent issues such as de-banking of assets, with its highly charged political debate and subsequent scrutiny from the FCA. De-banking is an example of an issue that is known to disproportionately affect cryptoasset businesses – both those in the DeFi space and beyond. Other markets around the world – including the US and the EU with their Markets in Crypto-Assets (MiCA) framework – are making changes that seek to resolve this issue, encouraging growth and cross-sector collaboration. The Treasury’s plan set out this week does not yet address this issue – leaving the door open for suggestions from business to prevent the UK from falling behind its international competitors.

Conclusion

Therefore, while its clear that the measures outlined in the Government response this week are, overall, the right approach, the timeline put forward for when this will become a reality remains somewhat unclear, especially given the uncertain year we are anticipating from a political perspective, and factoring in positive progress in other markets around the world. For fintechs and the wider sector, there is still a significant amount of work to be done in making the case to both the current Government and Labour in advance of the next election for a swiftly implemented and proportionate future regulatory framework.

 

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From crisis to opportunity – the Education inheritance for a Labour government

As the Labour Party gathers in Liverpool next week, flush from a big by-election win and sitting on a healthy 20-point lead in the polls, attention will turn to what Labour will say about how it is going to govern. 

For any incoming government, a major priority area will always be the education system. Education and Skills is central to Keir Starmer’s five missions and is one of the most prominent parts of the National Policy Forum report that will set the framework for the Labour manifesto. 

The reality is though, that from early years through to university and beyond, the sector is facing systemic challenges. Whether it is the difficulties in the recruitment and retention of teachers; the failings of the apprenticeship system; the rising funding pressure pushing some universities to the brink of failure; the spike in pupil referrals; or school buildings crumbling. There are crises to be dealt with everywhere.  

To discuss the legacy that Labour will be left with and what they can do to ensure that the education system is fit for purpose, I was delighted to welcome senior representatives from an array of organisations across the education sector to a roundtable discussion on what an incoming Labour government could do to break down the barriers of opportunity. 

While the demands and challenges from each part of the sector are considerable, some of the key things to watch out for that came from that informative discussion are as follows: 

The last time a Labour government was elected, its central mantra was ‘Education, Education, Education’, and the Blair and Brown years saw the Labour government take bold decisions and heavily invest in education at all levels, trying to make good on this mantra.  

Starmer’s Labour will not be in as fortunate a position this time and will need to make choices on where they can spend limited money and think creatively about how to use the resources they do have in a different way. 

For those organisations businesses and institutions looking to ensure that their particular part of the sector gets the attention and resource it needs, then you need to be able to make a strong coherent case, showing how you can make effective uses of resources and deliver opportunities for all.  

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Resetting net zero: the implications for business?

One of the key questions on the minds of business representatives attending Conservative Party Conference in Manchester this week will be just what the implications of the Prime Minister’s reset on net zero are. Industry will be looking for reassurance from ministers over the coming days that the broad net zero agenda remains in place and for confidence on other policy measures.

Last week, WA hosted a webinar with Nathalie Thomas, former Energy Correspondent and writer of the FT’S LEX column and Sam Hall, Director of the Conservative Environment Network to explore whether the political consensus on net zero is broken, and if it is, what that means for business.

These are our key takeaways:

1. There may have been limited substantial policy changes, but it has still caused uncertainty

The Prime Minister’s speech gathered significant interest, but on the substance, it arguably moved the dial less. While the phase-out date for petrol and diesel vehicles has shifted back five years, the ZEV mandate proposals announced by the government in recent days showed there will still be a very significant increase in EVs as a proportion of the market by 2030.

There are large swathes of the net zero agenda – particularly on industrial and power decarbonisation – that have not been impacted by these specific proposals. However, Sunak’s speech still caused concern and disruption to many of these businesses. For businesses and investors the sense that long-term policy frameworks could change so suddenly, has cast doubt over the certainty and stability of other policy areas.

2. It’s all about the politics

As we enter a critical general election campaign businesses need to recognise that politics is ruling the day. Ideas may stand up on pure policy and technical terms, but if they don’t fit into the government’s political agenda they’re unlikely to be taken seriously, and policy already in train that doesn’t meet this test could be under threat.

This means it is essential for business to fully understand the different factions and priorities within government, and knowing who’s influencing No10 and key departments. Messaging and policy asks from businesses need to be aligned with these political trends to succeed.

3. But how effective was the political trap the government tried to set for Labour?

The motivating factor within government was to force Labour into having to defend policies presented by government as expensive and disruptive to consumers. No10 wanted to create a ‘wedge’ between the parties. The Labour Party appear to have avoided this with a pragmatic commitment to reinstate the 2030 ICE phase-out date and by suggesting they will review the approach to domestic heating if they enter government.

The Conservative Party’s position in the polls has stabilised, and in some cases improved since the speech, but it is still to be seen whether it changes the fundamentals ahead of the general election. Currently, that doesn’t appear to be the case.

4. Businesses can do more to communicate the benefits of the green transition

Businesses are understandably frustrated at the policy instability. However, it also places the spotlight on the responsibility that businesses have to make the case for net zero and the green transition. The Prime Minister’s renewed focus on consumer affordability makes it even more critical for businesses to show that the agenda – and specific policies that will fit within it – will reduce costs for consumers and offer the best value for taxpayers and consumers.

Equally, the promise of ‘green jobs’ is made regularly, but there’s a renewed opportunity in the run-up to the next general election for businesses to be more specific and tangible about this – where are these jobs, what will they look like, how can they show they are ‘real’ and not just numbers from a spreadsheet?

This will make it much harder for policymakers to row back on the wider agenda in future, with clearer acceptance of the benefits and value, with net zero not just perceived as a cost.

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Will consumer scepticism and the cost-of-living crisis remain a roadblock to rolling out electric vehicles?

With just over six years to go until the UK government’s ban on new petrol and diesel vehicles comes into force, decarbonisation policies, EV charging strategies, and infrastructure plans abound – but consumers still need to be convinced that electric vehicles are cost-effective and practical.

Electric vehicles are the cornerstone of the UK’s transport decarbonisation agenda, exemplified in the government’s ambitious deadline for ‘all vehicles to be able to drive a significant distance with zero emissions’ from 2030.

The debate on the practicalities of the ban and the impact it will have on consumers is dominating political debate and it means understanding the challenges facing motorists and their experiences is essential.

With 83% of new vehicles registered in 2022 still fuelled by petrol or diesel, WA polled 1000 members of the public to find out their views on EVs and the potential barriers to adoption. Explore our findings below.

Will consumer scepticism and the cost-of-living crisis remain
a roadblock to rolling out electric vehicles? [PDF]

To find out more about WA’s work supporting high-profile organisations on sustainable travel, net zero, and energy issues, please contact Jamie Capp – by email jamiecapp@wacomms.co.uk or on 07910 004 035.

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UK’s largest power generator, RWE, appoints WA Communications to lead integrated strategic comms brief

Energy giant RWE, which produces around 15% of the country’s electricity, has appointed WA Communications to lead a two-year-long integrated communications programme, following a competitive pitch process.

WA – ranked as one of the UK’s Top 3 Public Affairs agencies in this year’s PR Week’s Top 150 table – will be supporting RWE as they look to work closely with the Government to deliver on its energy independence, affordability and Net Zero ambitions.

With a diverse operational portfolio of renewables and gas, RWE is at the forefront of delivering the UK’s Net Zero transition – and leading the way in cutting edge energy technology such as Carbon Capture and Hydrogen.

The wide-ranging brief will cover both political engagement and corporate communications, building on WA’s experience in integrated strategic communications, and leverages the firm’s deep energy expertise – with RWE joining its extensive roster of existing clients across the sector, including energy storage company Eaton, and clean-tech innovator Enertechnos.

Commenting, Dominic Church, WA’s Managing Director said:

“Energy is in the political and media spotlight like never before, and the Government needs to show it is acting to address well-publicised energy security and affordability concerns of voters – while at the same time maintaining progress against Net Zero targets.

“This puts an enormous onus on the energy industry to be providing solutions now to the current Government, while Labour is increasingly eager for industry input to flesh out their ambitious green energy plans ahead of the upcoming election.

“RWE sits right at the heart of this challenge, and we’re hugely excited to have been brought on board to deliver an integrated programme of work, as they look to navigate the turbulent months to come for the industry.”

Alice Barrs, RWE’s Head of UK Policy and Public Affairs said:

“We knew from the outset that we needed an agency that would take an integrated approach to the challenges RWE were facing as the UK looks to transition to Net Zero, and ahead of a General Election most likely next year.

“With its deep roots into Labour, and the team’s energy sector expertise – across both public affairs and comms – we knew that WA would be a great fit for this programme of work.”

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The policy platform that will shape Labour’s manifesto

Last week, details of the Labour policy handbook that serves as the initial blueprint for the party’s next manifesto was circulated, ahead of the next meeting of Labour’s National Policy Forum (NPF).

The full summary of policy positions was revealed online by LabourList.

The policies included will be subject to scrutiny and debate by members involved in the NPF, with amendments able to be filed until June. The National Policy Forum will meet in July to discuss its contents ahead of the Labour Party Conference in October, where voting will take place on the programme presented. Following this, once the official timeline for the next General Election has been called, Labour will hold a Clause V meeting to decide which policies make it to the manifesto.

Further detail of this process can be seen in WA’s Guide to Engaging with the Labour Party:

Following months of accusations levied against Keir Starmer that his leadership lacks ideological rigour – and whilst it remains far from a completed manifesto – the leaked documents give us an idea of what the policy direction for the UK could look like under his stewardship. Labour have signalled that their next manifesto will ‘under-promise and over-deliver’.

As such, with vital discussions and developments in the policy-making process still to take place in the coming months, NEC members will be fighting for space on what Labour will choose to fight the next election on.

Businesses should follow the next few months of the policy development process closely in anticipation for party conference – a key milestone in the policy-making process, with the shadow cabinet told to present a credible alternative plan for government at the gathering.

Reaction from those involved at the ground level of Labour policy towards the leaked document has been generally positive, but there are still disagreements in the direction of some critical areas.

Below WA’s sector specialists have set out what the initial policy handbook means for each key policy area:

Energy

Energy is set to take a leading role in Labour’s offering at the next General Election, with the Policy Forum recommending ambitious targets on energy infrastructure, building to the ultimate goal of delivering clean electricity by 2030.

Specific targets include doubling onshore wind capacity, quadrupling offshore, and tripling that of solar. Given these technologies currently have around 14GW of installed capacity each, hitting these targets would involve commissioning over 20GW of wind and solar every year from 2024 to 2030, no mean feat, given the current speed of planning and Grid approvals.

In addition to renewables, there is strong support for nuclear and hydrogen, and a recognition that the likes of floating offshore wind, CCS and marine energy will require Government assistance in their developments.

As for the other side, it’s clear the forum doesn’t want to see any expansion in the use of fossil fuels, pushing for no more oil and gas licenses, maintaining the ban on fracking, and avoiding using coal, and no mention of biomass.

There is no clear message on decarbonising tougher sectors, such as energy-intensive industries or aviation, meaning there is still opportunity to influence in these areas.

Financial Services

The party has shown significant commitment to partnering with the financial services sector and protecting the UK’s reputation as a global financial leader. Central to this is its headline economic ambition to secure the highest growth in the G7, delivered through the Green Prosperity Plan and driven by inward investment aligned to the Paris-agreement targets.

They have also outlined plans to introduce long-term policies relating to consumer protection in emerging markets, including in the buy-now-pay-later sector which has been a bedrock issue for the party whilst in Opposition. Businesses should anticipate a review of regulatory barriers and potential risks.

Health & Life Sciences

Nothing in the proposals will come as a surprise for those following Labour’s core offering during the Starmer and Streeting administration. Detail is light and centred primarily around the issues that currently drive the debate in health: tackling the workforce crisis and cutting waiting lists.

Notably absent from the proposals is a focus on reducing health inequalities, despite both the Conservatives and numerous think tanks sympathetic to Labour correctly identifying it as one of the health challenges holding back growth across areas of the country. Critically for Labour, these inequalities are often most prevalent in areas they will need to win at the next General Election. Streeting is expected to set out Labour’s position on this in due course.

A strict focus on addressing only the major systemic health challenges is typical for a party in opposition, but Labour will at some point need to set out its plan to address the knottier challenges that require targeted action: cancer; obesity; the ageing population; and cardiovascular disease to name a few. This next phase of the manifesto development will look to examine these areas in more detail, and businesses should be alert and on-hand to offer potential solutions in these spaces.

Addressing these critical challenges will not be quick, and Labour’s success in delivering against its objectives will be measured in years, not months. As the manifesto develops, Labour must look to balance its top-level agenda for reform against ‘oven-ready’ wins early into their potential Governance to ensure they are seen to be progressing against their own objectives in the minds of an electorate increasingly losing faith in the health service.

Transport

As anticipated, Labour’s flagship transport policy is the renationalisation of rail. Labour intend to bring the railways back into public ownership as contracts with existing operators expire. The scale of ambition for rail does not stop there, with the document setting out intentions to deliver Northern Powerhouse Rail and High Speed 2 in full. This will be underpinned by a long-term strategy for rail that’s consistent with Labour’s fiscal panning and gives communities more of a say on their local rail services.

With GB Railways still in formative stages ahead of a potential Transport Bill in the King’s Speech and no guarantee of it completing its parliamentary stages before a general elations, there remains significant uncertainty and a range of potential outcomes for the rail sector. For commercial interests in the sector now is the time to carefully set out a vision for how they’d align with Labour’s agenda and rebuild trust in the network.

Devolved governments and local authorities can also expect more responsibility over what Labour calls “the broken bus system”. Communities will be granted powers to franchise local bus services, lifting the ban on municipal bus ownership. With franchising still in its infancy in the northern metro areas, the next few years will be essential to assess how local control is working and define a model that will work in rural, semi-rural and other non-metro areas.

In addition to public transport, Labour are also seeking to turbocharge the just transition to more affordable EVs by helping households to manage the higher upfront cost of vehicles. To ensure EV infrastructure is able to keep up pace, Labour are planning a programme of electrification, including accelerating the rollout of charging points in left behind areas. A package of incentives may well be needed to help address an emerging challenge around access inequality.

Childcare, Education & Skills

Shadow Education Secretary Bridget Phillipson is determined to ensure that education is at the heart of Labour’s programme for Government, as it was when the party last came to power in 1997.

Labour recognise that one of the most significant challenges facing the country today is the need to rebuild the economy and ensure that workers have the right skills required to support the jobs of the future. This cuts across different departments and policy areas, but remains a core ambition of the Shadow Education Team, who want to deliver a “landmark shift in skills provision”.

Where Labour differ from the Government in this regard, they have linked future skills needs closely to their ambitions for the green agenda, they want to devolve adult education and skills budgets to metro mayors and combined authorities, and they want to give businesses more flexibility to use skills funding to meet specific employer needs.

Another key priority of Labour’s is to reform childcare, right from the end of parental leave to the end of primary school. These plans are still light on detail – perhaps because of the need to work around the announcements made by the Government in March’s Budget, and perhaps because of the funding implications required to meet their ambitions for a so-called ‘childcare revolution’.

Looking ahead, Keir Starmer is set to launch his opportunities mission ahead of the summer recess in July – we look forward to seeing the detail then.

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E-scooters at a crossroads

E-scooter manufacturers, providers, schemes and riders have been left waiting for certainty on their future.  

After last year’s Queen’s Speech, Ministers confirmed their intention to legislate on e-scooters, moving beyond the time bound and limited role e-scooters currently have. Two Prime Ministers and 3 Transport Ministers later, the future of e-scooters is back up in the air.  

The Transport Bill – that would have been the vehicle for legalisation and legislation – has been a casualty of upheaval at the heart of government. Now Ministers and officials are left having to bid for parliamentary time again, with even fiercer competition for time in the last King’s Speech of this government before an election.  

Despite the transformational role e-scooters could play for travel, particularly in urban areas, there is a risk that new decision makers have lost track of e-scooters’ congestion busting, cost saving and carbon cutting benefits. The Ministers, advisers and champions that secured the announcement from government have moved on, and the new crop have yet to make a full throated endorsement.  

In the face of this challenge, WA’s latest transport temperature check polled public attitudes to e-scooters to analyse the challenges in the road ahead.  

Whilst there is still a route to legalisation and legislation, we have found that more of the public is opposed to e-scooter legislation. It means advocates start on the back foot, and need to both convince the sizeable number of ‘don’t knows’ (one in four people) and address the concerns of opponents. Safety risks to other road and footway users is the most commonly cited reason for opposing legalisation, driven by persistent coverage of dangerous incidents.   

If these and other concerns are not addressed, the case for legalisation will diminish. Ministers, advisers and officials will either be unwilling or unsuccessful in their bids for time to act in the King’s Speech later this year, with Number 10 instead deciding to focus on less controversial and easier to deliver policies. 

In turn, Labour has been able to stay largely silent on the e-scooter debate. There is a narrow window to ensure Labour’s transport team prioritises e-scooters, to keep pressure on the government now and ensure it does not drop off the agenda completely should they win. 

The next 6 months are critical if the industry wants to escape the legal limbo it is in. Only by delivering a gear change in engagement can the industry secure its long term future and make sure that the key political decision makers in both the Conservatives and Labour understand the benefits e-scooters will deliver for their agendas.  

Doing so will help build a new consensus on the future of e-scooters, but missing this opportunity means the wheels could fall off completely.

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Former Special Adviser Amy Fisher joins WA Communications

Following 45% year on year growth across the agency, Amy has joined WA as a Director in the Strategic Communications practice, as WA continues to broaden its political insights and strategic counsel.

Amy will play a key role in servicing client accounts across the business, with a focus on providing insight and senior advice for clients on around issues and reputation management and crisis comms.

The creation of the Strategic Communications practice last year came amid not only strong growth for WA, but also with high profile new business wins including Novo Nordisk, Newcastle University, Landmark Information Group, Roadchef, Edenred, and Simplyhealth. The new offering draws on the strengths of both Corporate Communications and Public Affairs teams to further strengthen WA’s reputation for outcome-based results for clients.

Amy has joined WA after spending time, since 2010, in senior roles in government as a Special Adviser in four different Whitehall departments (Northern Ireland Office, Home Office, Ministry of Justice, Department for Environment, Farming and Rural Affairs), and as Director of Communications for the Conservative Party.  Latterly, she has joined WA from the think tank Policy Exchange, where she was Director of Policy and Communications.  Amy has worked previously in the private sector, including at Google, but laid her roots in Westminster, working in Conservative HQ’s press office, at the outset of her career.

Marc Woolfson, Partner and Head of Public Affairs, WA Communications, said:

“Amy is a hugely respected political figure and we’re delighted to welcome her as we build our senior team. She will bring unparalleled insight to our Strategic Comms practice, both from a political and media standpoint. This unique blend of expertise is a perfect fit for WA as we continue to develop our team of experts and create more holistic offerings for our clients, rooted in deep insight.”

Amy Fisher, Director, Strategic Communications, said:

“It’s clear that there are significant challenges ahead for the country; at such a time, it’s even more important that clients receive properly integrated PR and PA support, and carefully thought-through advice.

“I hope to add significant value to WA’s pedigree in the public affairs landscape, and combined with my experience in communications, and crisis comms, contribute to WA’s truly blended offering across the market. I look forward to helping clients navigate their way forward.”

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