What Business Wants

12 September 2024

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5654 & Company has worked with polling company Focaldata to understand the perceptions by business and business decision makers of the new Labour government. We wanted to explore reaction to the government’s first few weeks; including reaction to specific policies in the Government’s legislative agenda, and the extent to which the Government’s fiscal and economic priorities were matching those of the business community.

Our poll shows there are signs of optimism among businesses decision makers about the year ahead.

Decision makers had a generally positive view of the Labour Government’s start, with 56% - a clear majority - reporting a favourable view and only 22% reporting an unfavourable view:

Our polling suggests the business community is decidedly more positive about Labour’s first couple of months than the general public, whose lukewarm assessment chimes more closely with other published national polls.

In addition, our polling indicates a degree of optimism about the state of the economy – where over half (54%) of businesses also felt that the business economy would improve in the next year.

Business decision makers also believe Labour are better placed to deliver than the Conservatives across the board on a range of measures.

This reinforces how much ground the Conservatives have to make up to restore their traditional reputation as the party of business…

Significantly, an overwhelming majority of business decision makers (75%) believe the Government should prioritise cutting spending over raising taxes (25%) when making “difficult decisions” to fix Britain’s finances.

When asked what they are currently most worried about, the top issue cited by businesses was energy costs (40%); followed by slow UK growth (34%); levels of business tax (28%); interest rate increases (27%); rising costs of materials (23%); manufacturing rates and costs (23%); the labour market (22%) and Skills gaps (20%)

When asked their business priorities for government action, action on energy bills similarly came top:

It is notable that planning reform scored so low despite it being regarded by Labour as a key plank of their mission to kickstart economic growth, and forms a key part of their legislative agenda in the King’s Speech through their flagship Planning and Infrastructure Bill. Similarly, devolution of power to the nations and regions, which the Government intends to achieve through the English Devolution Bill, does not seem to chime with business priorities.

Quizzed about Labour’s policies designed to improve workers’ rights and productivity, there was a surprising level of enthusiasm from business decision makers for individual measures:

However, when later asked whether the election of a Labour government makes them more or less worried about the amount of regulation placed on business, our poll showed 42% of business decision makers are more worried compared to 31% who are less worried:

Fieldwork conducted in August 2024