Labour wins landslide in general election – What does this mean for SMEs?

Labour hammers Tories with win, ending 14 years of government under the Conservatives

Labour wins landslide in general election

The Labour Party has won a landslide victory, meaning Keir Starmer will be the UK’s new prime minister. In his constituency victory speech, the Labour leader said it was “time for us to deliver”. “We have to return politics to public service,” he goes on, adding his government will “show it can be a force for good”. Labour has won a House of Commons majority of 412 seats giving Labour a general election victory. This is the first time Downing Street has seen a Labour Prime Minister since 2010, as Rishi Sunak stands down as leader. This leaves Rishi Sunak’s Conservative party facing one of the worst defeats in its history, winning only 121 seats in Parliament.

Labour leader Sir Keir Starmer won his seat in Holborn and St Pancras in London with 18,884 votes – with pro-Palestinian activist, independent Andrew Feinstein, in second place. “Tonight, people here and around the country have spoken and they’re ready for change, to end the politics of performance and return to politics as public service,” Starmer said as he won his constituency. “You have voted. It is now time for us to deliver.” Nigel Farage has been elected as an MP for the first time as his Reform UK party won four seats. After the announcement of his win, Mr Farage said it was “the first step of something that is going to stun all of you”. The Liberal Democrats have won 56 seats in Parliament. 

The Labour Party have proposed plans to restore economic stability with tough new spending rules, allow businesses to plan, with a cap on corporation tax at 25% and a new industrial strategy to give business long-term certainty for investment decisions. Business leaders have urged the new government put SMEs at the forefront of policies to stimulate the economy – and tackle the cost-of-living crisis once and for all. Les Roberts, Business Comparison Expert at Bionic, said: “Small and medium-sized businesses are the backbone of the UK economy, accounting for nearly two-thirds of total employment and around half of turnover in the UK private sector. But the last few years have been tough, as we’ve lurched from one crisis to the next – Brexit, Covid, high energy prices, soaring inflation – all have taken their toll on Britain’s business population and the economy. If politicians really are serious about growing the economy, then improving conditions for these businesses should be at the front of mind when policy decisions are made. Giving those businesses the means to thrive and making sure people have enough money to spend on the products and services they provide would be a shot in the arm for the UK’s stagnant economy.”

Some business leaders want the new government to invest more in AI infrastructure so as to allow businesses and customers to utilise new technology advancements for a better future. James Hall, VP & Country Manager, UK&I at Snowflake said: “For the new government, investment in tech, particularly around AI will be paramount to streamline services and enhance citizens’ lives. We expect to see Chief AI Officers hired across government departments, to ensure AI underlines the priorities in all the parties’ manifestos, while a foundational data strategy with governance at its core will help meet AI goals. An AI fund can also help promote public-private innovations and enable the commercialisation of data and assets globally through synthetic data. This approach would offer a unique opportunity to unlock value from data whilst maintaining robust privacy protections, as synthetic data can mimic real-world information, without exposing sensitive personal details.”

Latifa Yedroudj
Latifa Yedroudj

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