General Election 2024: Business leaders call on Labour to kick-start growth after landslide win

The run-up to the election saw both parties focus heavily on the economy following a turbulent few years which saw household finances hammered by soaring inflation.

Trade bodies and business groups indicated on Friday morning that there is an opportunity for the new Government to drive growth in the coming year.

Rain Newton-Smith, chief executive of the CBI, said: “Delivering sustainable growth should be the defining mission for the new Government.

“Business stands ready to bring its innovation, ideas, and investment to make that shared mission a reality.

“The new Prime Minister has been given a clear mandate to take the tough decisions on areas like planning reform and boosting grid capacity needed to get the economy firing on all cylinders.”

Labour’s economic plans include a new national wealth fund to boost investment, as well as the development of a 10-year infrastructure strategy.

Stephen Phipson, chief executive of Make UK, said: “Business will welcome such a clear result and an end to the political and economic instability of the last few years which is essential for companies to now bring forward much-needed investment.

“Looking ahead, the new Government has a lot in its in-tray to address.

“First and foremost is the urgent need to kick-start the UK’s anaemic growth levels of recent years and boost investment in our infrastructure, without which we cannot address the many urgent priorities the country faces at national and regional level.”

Director general of the BCC (British Chambers of Commerce), Shevaun Haviland, congratulated Sir Keir.

She added: “The public have delivered them a clear and decisive parliamentary majority – hopefully they will use this mandate to provide the stability and certainty businesses crave.

“But after a gruelling election the really hard work starts now.

“We need to see action from day one on pulling together a coherent industrial strategy for the long term, which places a strong emphasis on harnessing green innovation.”

Nevertheless, there was some caution in certain industries over the impact of Labour’s win.

Offshore Energies UK (OEUK) raised worries over plans for further windfall taxes and to stop issuing new North Sea oil and gas licences.

David Whitehouse, chief executive of OEUK, said: “The people in our sector and investors remain deeply concerned over Labour proposals to impose a further windfall tax and end new licences.

“These policies, if poorly managed, and without industry input will threaten jobs and undermine the decarbonisation of the UK economy. The details matter.”

West & North Yorkshire Chamber of Commerce congratulated Sir Keir Starmer on being elected Prime Minister.

In a statement, the chamber said: “On behalf of our members and the region’s business community we wish him and his incoming government every success.

“We hope that the new Prime Minister will recognise that placing Yorkshire at the heart of Britain’s economic policy can help drive the whole country back to much-needed growth.”

Amanda Beresford, chair of West & North Yorkshire Chamber, said: “On behalf of our members I wish to congratulate Keir Starmer on becoming Prime Minister. Our hope now is that Sir Keir make good on their manifesto commitment to grow the economy and create the environment that allows businesses in Yorkshire are able to grow, invest and create jobs and prosperity.”

Fergus Baille, CEO of Leeds-based business the Bailie Group, said: “The people have spoken, and Labour has a clear mandate to deliver change. Businesses thrive on clarity, stability, and direction, and with a substantial majority, Sir Keir Starmer is well-positioned to provide the country with the stability it needs.

“The proposed roadmap for business operations and the development of an industrial strategy to drive growth are welcome initiatives. A robust Britain is built on a strong economy, and the government now has a prime opportunity to establish an agenda for growth.”

The pound has lifted against the US dollar and the euro after Labour secured a landslide victory.

The pound had largely held steady in overnight trading after exit polls signalled the extent of Labour’s lead, with a significant Labour majority already having been priced into financial markets.