Labour Party Conference Archives

Powering on: what have we learnt about energy from this year’s party conferences?

With energy and climate being one of the policy areas where the new Government have built most momentum, the sector is getting to grips with what’s likely to come next and how this will be sustained over the course of the Parliament. Net zero was a significant focus at both the Labour and Conservative Party conferences, although with vast differences in how it was approached.

What has the last fortnight taught us over how both parties are approaching energy and decarbonisation, and what emerging trends became clear at fringes, in the keynote speeches and in side discussions between industry? Here are our reflections on what we learnt.

There’s a tension emerging between delivery against generation targets and using this investment to drive wider social change

The energy sector has a critical role to play in at least two of the Government’s Missions: Clean Power by 2030 and Economic Growth (and arguably also the Opportunity Mission considering the critical importance of skills). The fastest, lowest cost and most efficient delivery of projects is essential to ensure success against these agendas. However, it’s also not a secret that Labour governments are keen to deliver social change. The phrase “inclusive growth” was used repeatedly by Cabinet Ministers in Liverpool.

But can you deliver projects as quickly as possible while also maximising their social impact? While Ministers are clear that they are prioritising project delivery, important voices within the wider Labour movement are calling for policy changes that will ensure the UK’s energy system is more actively used as a vehicle for delivering social reforms.

Nature groups are campaigning for an amendment to the Great British Energy Bill which would give the new body an “environmental duty”, with a requirement to consider the impact on biodiversity. Trade union representatives used contributions at fringe events in Liverpool to advocate for public subsidy and financial support – through the Contracts for Difference (CfD) mechanism, the British Jobs Bonus and the National Wealth Fund – to be conditional on developer commitments around UK content and supply chain support, and trade union recognition for their workforces.

While these proposals are not government policy, they demonstrate the different pressures that Ministers are facing and that business need to be attuned to.

Technologies that will have a role to play after 2030 need to be making the case now for attention

The 2030 Clean Power Plan that Energy Secretary Ed Miliband and the head of Clean Power Mission Control Chris Stark have tasked the newly established National Energy System Operator (NESO) with creating this Autumn will create a clear pathway for projects and technologies that will be essential to meeting this target. There’s likely to be a much smoother delivery pathway for these projects – with the prospect of preferential access to grid connections for example.

However, there’s a clear risk for those technologies that aren’t identified as fitting into this category, but that are likely to have a medium to long-term role including to meet 2050 targets. Nuclear and likely some carbon capture and hydrogen projects are most impacted.

It’s not to say there is no political support for these projects or technologies, however a tunnel-vision focus on 2030 creates a risk of more limited political attention for these solutions and the policy steps required to help them progress being deprioritised.

Industry have a narrow window to make a very clear case to government and NESO now on the 2030 contribution that these projects and technologies can make, and to articulate the risks for future viability – which will still be needed to hit future targets – if progress slows and key decision points are deferred.

Market reform is reappearing on the policy agenda

Reforming how the electricity market works is divisive within industry. The review of electricity market arrangements (REMA) process has occupied significant political, policy, regulatory and industry time and attention to date, with little tangible progress.

However, in the fringe discussions in Liverpool and Birmingham, the debate was reopened. Advocates for a more locational approach to electricity market pricing argue that it will reduce bills. The case against is essentially that the benefits are overstated, and it will create significant market disruption.

There won’t be quick solutions to this one but expect the discussion to intensify over the next six months or so.

Heat decarbonisation is the next big issue on the policy agenda

It’s not a surprise that the Government has sought to deliver as many ‘quick wins’ as possible in the first 100 days, with a particular policy focus on renewables. Limited bandwidth means political attention has been directed towards this part of the energy market.

But with many tough challenges to address across the energy market, this focus will need to widen throughout the Autumn and beyond. It was clear from talking to politicians and industry at both Party Conferences that heat decarbonisation is likely to become a key focus over the next 6-12 months. Often neglected and seen as too difficult to solve, how to decarbonise heat and buildings can’t easily be ignored for much longer.

With key decisions over future technologies expected to be taken in 2026, impatience from industry for the introduction of the Future Home Standard and questions over exactly what Labour’s Warm Homes Plan looks like, this is a theme that will occupy much more policy, political and media time in the months to come. It’s also a space where the government’s thinking is less mature, creating significant opportunities for constructive solutions – both at a policy and delivery level.

The future direction of Conservative energy policy is starting to emerge

The outcome of the Conservative leadership election at the start of November will clearly shape how the Party scrutinises Labour’s energy policy over the course of this Parliament. However, a number of themes are already becoming clear. At the heart of it is likely to be a focus on supporting new nuclear – a combination of GW scale and newer technologies like SMRs, AMRs and fusion. The support for nuclear from Conservative Party politicians at panel discussions in Birmingham was fulsome, and centre-right thinkers are pushing the technology heavily. Conservative Party politicians believe that Labour’s support for the technology is relatively shallow, offering them a chance to highlight policy gaps.

Beyond this, expect continued scrutiny of the impact and value of GB Energy, continued support for North Sea oil and gas, and an argument that the 2030 Clean Power target is creating unintended consequences – increasing the whole system costs of renewables and leading to a lack of focus on medium to long-term technologies. The challenge in the long run will be how to build a distinctly Conservative policy platform while engaging constructively with a government agenda which they instinctively perceive as overly centralised and planned.

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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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Expectation vs. reality: the key media takeaways of Labour Party Conference

Labour Party Conference in Liverpool marked a key moment for Sir Keir Starmer and the party – an opportunity to reflect on the first months in power and outline future direction, while celebrating its landslide victory. However, the mood music leading up to conference wasn’t as cheerful as you’d expect given the party is in power for the first time in fourteen years, with backbench concerns around ‘doom and gloom’ messaging and the expenses scandal dominating headlines.

The media reaction remained mixed throughout the conference, with no major new announcements and lobby journalists complaining about the lack of stories and briefing. We outline our key media takeaways below:

1. Leadership vision: Pragmatic but uninspiring

The Prime Minister’s keynote speech, the set piece of conference, was met with a mix of praise and criticism from the media. Several journalists highlighted his pragmatic tone – noting his insistence on being a leader who makes difficult but necessary decisions.

However, the speech was also described as policy-light and lacking in inspiration by other media outlets. While Starmer emphasised fiscal responsibility and long-term planning, some commentators felt the speech failed to excite voters or provide a clear, bold vision for the future. Put simply, much of the speech was seen as reiterating familiar positions.

2. How the policy announcements landed

Starmer’s policy announcements, including housing for veterans and vulnerable groups, confirmation of the headquarters for GB Energy, and more information on the Growth and Skills Levy, were widely covered by the media. Some of these updates, as well as the announcements made by Chancellor Rachel Reeves, were trailed in advance of the speeches, with the Mirror receiving the Hillsborough law exclusive and the Sun receiving the migration visa exclusive.

While this followed the traditional conference briefing strategy from No10, scarce policy detail and announcements left many wanting more. Many journalists we spoke to on the ground felt the No10 briefing machine was not operating as slickly as they would expect.

3. What the party wanted to talk about vs. what the media wanted to talk about

The main story ahead of conference was the internal infighting within Starmer’s top team. Alongside these internal tensions, questions about donations dominated the headlines. The media closely followed Labour’s internal dynamics, with Sue Gray and Morgan McSweeney the names on every journalist’s lips – as well as what Starmer was planning to do to avoid the advisors becoming the story.

On top of this, every journalist was asking Reeves and Starmer who bought their suits – as a result of the ongoing donations issue the Labour top team are having. While this is very much not what Labour wanted to discuss, a lot of journalists felt as though they had no choice given the lack of policy announcements at conference itself.

4. Mixed reviews from the public

Media coverage of public sentiment surrounding the conference revealed mixed reactions. A YouGov poll showed that while Starmer’s economic message resonated with many voters, there was growing concern about the party’s ability to deliver on its promises. For those who attended conference and work closely with MPs and ministers, this broadly aligns with the sentiment coming out of the party conference.

Other outlets portrayed the public’s reaction to the speech as responsible and realistic, particularly highlighting Starmer’s willingness to tackle unpopular but necessary policies – outlining the need for new pylons for clean energy to take off and the need for new prisons closer to people’s homes. However, the theme of ‘this is nothing new’ is the dominant strain of thought among Labour voters.

Looking forward

The media consensus after the conference is that Labour’s immediate future is uncertain. With a rocky start to their first 100 days, the media seem to be somewhat unforgiving of this new government and its ministers, who are still finding their footing. While Starmer’s pragmatism and focus on rebuilding the economy have earned praise, critics are calling for more visionary leadership – and more hard policy.

All eyes now turn to the Autumn Budget on 30 October as the next make or break moment.

Please contact media@wacomms.co.uk to speak to us about how we can support with media insight, advice and counsel.

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Labour Party Conference: Five key takeaways

As Labour concludes its annual party conference in Liverpool, Tom Frackowiak Partner and Head of the WA Financial & Professional Services practice outlines his five takeaways for business:

Five takeaways from Labour conference in Liverpool:

1. Conference momentum: Labour will be ecstatic with how the conference in Liverpool went! A record number of attendees, speeches from the Leader and Shadow Chancellor that landed a narrative focused on “national renewal” and rebuilding Britian, packed fringe events and receptions. The business community also turned up en masse to listen and engage with Labour’s vision for the UK economy. As one Shadow Minster said to me slightly tongue in cheek, “we are now the party of business”; having been in Liverpool it is hard to argue with that assertion.

2. Labour engagement will be difficult: Businesses in Liverpool were highly complementary of the efforts made by the Labour team to engage with their sectors, but many still struggle to secure individual meetings with Shadow Minsters and their advisers to have more detailed discussions on policy direction. Again, looking at the number of businesses in attendance in Liverpool this is unsurprising. Clear thought and consideration need to be given to how you achieve cut through! How is your business essential to Labour’s programme for Government?

3. So, listen to the words from conference: To get cut through, business need to show how they will help a Labour Government “build”, “invest”, “innovate” and deliver a “new direction for skills”. With aspirations to be a “Mission Government” how does your businesses corporate agenda align with Labour’s five national missions? Can this be framed in the short, medium, and long-term?

4. Still a lot of policy detail missing: While Labour has set out an overarching vision for Government there is still a lot of detail that businesses to hear for planning and investment decisions. Currently Labour’s ‘national wealth fund’ is doing a lot of heavy lifting for its economic vision for the UK economy. In sectors like financial and professional services – which only has four paragraphs in the final 112-page National Policy Forum paper – there is an eagerness and anticipation to know more.

5. Labour haven’t won the General Election: While clearly momentum is with Labour and national polling gives the Party a consistent double-digit lead over the Conservatives, there may still be over a year to go until a General Election. While there is a clamor from business to get to know Labour the General Election results of 2015 and 2019, plus EU Referendum should be a warning that election results can often ‘surprise’. Any strategic approach to advocacy and engagement should adopt a holistic or multi-stakeholder approach.

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Is Labour Back?

There is a clear change of mood within the Labour Party. This year’s Conference didn’t feel like a party still riven with the internal battles of recent years. Keir Starmer has complete control of the National Executive Committee and party machine, the ‘grownups’ are running the show and the suited young men and women, and corporate sponsors are back in force.

Importantly, following the Conservatives’ disastrous fiscal event and consequential Sterling crisis at the end of last week, there is also genuine belief seeping back into the assembled activists, councillors, MPs, and shadow ministers, that their years of opposition could be coming to an end.

Some key take-outs included:

It’s still the economy stupid: Rachel Reeves is considered a class act and has carefully manoeuvred the Labour Party to be seen as a safe pair of hands with the economy, spending time wooing business and dramatically improving her media performances. Not quite believing the gift that was handed to her last Friday, she now needs to occupy the ground of economic competence that has been vacated and consolidate Labour’s poll boost.
Some meat on the policy bones: while caution remains the watchword of Labour this week, we have started to see a pattern emerging of what a Labour government could look like with some interesting announcements. A commitment to R&D spending to support innovation at the heart of a new industrial strategy; rail re-nationalisation (the populist nationalisation), helped enormously by the Herculean task it took to get Liverpool on a train; reinstating the top rate of tax; a National Wealth Fund, offering returns for taxpayers while targeting investment towards infrastructure; zero carbon energy by 2030; new powers to local and regional leaders; and a commitment to substantially increase the percentage of social housing as part of the UK’s housing stock. All solidly centre left policies that hark back to the days of Labour governments past.
Handed a poisoned chalice: Yet the legacy they would inherit if elected, will be nothing like the favourable conditions that Labour found in 1997. The room for manoeuvre for an incoming Labour administration is non-existent; for example, the £28 billion a year borrowing identified to tackle climate change no longer exists because of the spiralling cost of UK debt. As one leading light in the party said, “the problem with referring back to the 1972 Barber budget, is that it was a Labour government in 1976 that had to go to the IMF to repair the damage and then pay the price in 1979.”
Country first: Keir Starmer capped off an encouraging week for Labour with easily his best speech as leader. While he will never provide the soaring oratory of Blair or Brown, he has grown into the role, and he gleefully occupied the space that had been gifted him at the centre of British politics with the departure of Johnson and the tilt to the right under Truss. While the rhetoric of ‘country first’ has not been seen since the conference speeches of Tony Blair, he is probably the wrong comparison. Instead, Keir Starmer represents a Labour tradition closer to John Smith, Harold Wilson, and indeed Clement Atlee. The question that will be answered at the next election is, is the country ready once again for a re-pitch of classically social democratic policies packaged up for the challenges of the coming decade.

As things stand, and buoyed by commanding leads in all polls, Labour look set to form the next government. This comes with huge expectations and pressure. They need to be providing their answers to the overwhelming challenge facing the country, which are only set to get worse over the next 12-18 months.

For business, it’s no longer just about just ‘paying attention’ to Labour, it’s engaging with the people, priorities and policies that are looking increasingly likely to be those of the next government.

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Posts Tagged ‘Labour Party Conference’

Powering on: what have we learnt about energy from this year’s party conferences?

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

Expectation vs. reality: the key media takeaways of Labour Party Conference

Labour Party Conference: Five key takeaways

Is Labour Back?

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