Please click on the following link to access GK’s budget briefing: GK Strategy – Autumn Budget 2025
Please click on the following link to access GK’s budget briefing: GK Strategy – Autumn Budget 2025
The government has set itself the ambitious goal for becoming the fastest growing economy in the G7. This lofty ambition sits at the heart of the government’s agenda and is central to its industrial strategy – a 10-year plan to increase business investment in the industries of the future. The drones sector has been identified as a frontier industry, with the government clearing a flightpath for the UK to be a world leader in drone innovation and technologies.
Driving this move is the extraordinary economic potential of drones. A recent PwC report states that the sector could contribute £45 billion to the UK economy and support 650,000 jobs by 2030. Further analysis undertaken by Frazer-Nash consultancy for the government suggests that with public support and a shared strategy and ambition between government and industry, the sector could have contributed £103 billion by 2050. Together, these findings demonstrate how collaboration between government and industry can lead to a thriving drones sector which can drive growth and innovation across the UK.
Regulatory challenges
For this growth to be unlocked, the government must work to address regulatory challenges that constrain innovation. Across government, companies face a range of overlapping rules that can slow commercial deployment and limit investment. One of the largest constraints on the sector is the requirement to keep the drone within the line of sight of the operator. Additional health and safety regulations enforced by the Civil Aviation Authority (CAA) also prohibit drones being flown within a 50m radius of people. This constrains the range of operations drones can perform, limiting their use in many areas such as delivery, infrastructure inspection, and large-scale surveying, particularly in urban areas.
The Health and Safety Executive (HSE) also limits the growth of drones operating in the agricultural sector, with the HSE requiring companies to get approval for almost all aerial spraying. The HSE states that there is a 52-week processing time for drone applications, which will inevitably undermine the innovation and adoption of drones in the agricultural sector.
All these affected areas are where drone technology offers incredible commercial potential, so overcoming these regulatory barriers will be key for businesses looking to unlock growth in the drones sector.
These challenges are not insurmountable and government and industry collaboration is already underway to tackle them. The Regulatory Innovation Office (RIO) is leading a series of pro-innovation reforms for the drones sector, including the introduction of a single, standard risk assessment process to cut approval times for complex drone operations. They are also working on expanding the CAA’s atypical air environment policy, which enables the use of drones Beyond Visual Line of Sight (BVLOS), with the ROI providing £8.9 million in funding for innovative projects that will test the effects of new BVLOS standards. The ROI has also worked with the HSE to make it legal for drones to spray slug pellets, which is a major step forward for agricultural drones businesses.
Public concerns
Drones businesses also face challenges of public perception. The research done by Frazer-Nash consultancy estimated that without public support, the size of the sector will be £65 billion by 2050. That represents a £38 billion reduction in the sector compared to the scenario with public support. Given the incredible economic value that lies in public support, addressing public concerns, such as the use of drones for criminal activities, are of great importance to the sector and government to ensure businesses reach their full potential.
The government is already thinking about innovative solutions to the public perception challenge. In November 2025, the government launched a technology challenge which will encourage industry to develop innovative systems capable of detecting drones designed by criminals to evade current detection methods. If successful, this challenge will help the government intercept drugs being delivered by drones into prisons.
The government’s willingness to cut red tape and find innovative solutions to the challenges facing the sector creates opportunity for the sector. However, it remains essential for companies to engage with the government, both to push further on reducing overly prohibitive regulation and to address public concerns surrounding drone safety. By doing so, businesses can play a central role in shaping a regulatory landscape that supports innovation, builds public trust, and cements the UK’s position as a global leader in drone technology.
If you’d like to discuss drones and the wider political landscape in more detail, please reach out to Jacob on Jacob.walsh@gkstrategy.com
Ofsted has now begun inspecting schools, early years settings and further education providers under a new education inspection framework. The changes, in effect from 10 November 2025, are intended to make inspection clearer and more consistent. The new framework is also designed to give more granular detail to parents on a provider’s performance and to reduce the workload and pressure on staff created by inspections. Ofsted has said that it will prioritise volunteers for full inspections between 10 November and the end of 2025, which will give other providers a grace period to familiarise themselves with the new regime.
The new framework will place increased emphasis on inclusion, to ensure that the experiences of vulnerable children and those with SEND are assessed, as well as highlighting achievement as a separate category. The evaluation areas that inspectors will focus on are:
While Ofsted has said that it will continue to assess the effectiveness of a provider’s safeguarding measures, it will not change its assessment process in this area. As a result, safeguarding will continue to be reported separately on a binary ‘Met / Not met’ basis rather than being allocated a rating.
The most significant difference between the new framework and the previous one is that it will forgo single-word judgements on the overall quality of providers. These judgements had led to serious concerns from industry bodies, such as the National Association of Head Teachers, about staff wellbeing, following the death of headteacher Ruth Perry. Instead, inspection outcomes will be presented as a report card setting out separate ratings for each area of focus ranging from ‘exceptional’ to ‘urgent improvement’.
While consulting on the report card system, Ofsted said the new ratings will enable parents to differentiate more easily between providers with the top three ratings replacing ‘outstanding’ and ‘good’. Given the vast majority of schools are rated as either ‘outstanding’ or ‘good’, the introduction of an additional rating is likely to be hugely beneficial to the highest performing schools, allowing them to distinguish themselves from their competitors.
The framework reaffirms Ofsted’s principles that inspections should support improvement and emphasises the need for greater collaboration between inspection teams and the staff working at education providers. To ensure this, the framework includes a formal code of conduct, requiring inspectors to act with professionalism, courtesy and respect. It also requires providers to be open, transparent and honest in the evidence they supply.
During the consultation process Ofsted also confirmed that the new framework would reduce the pressure of an inspection on school leaders. This will be done by having additional inspectors to enable the lead inspector to act as a more consistent point of contact, and by shortening the length of inspection days.
Ofsted has also embedded mental health awareness into its inspector training and has introduced a provider contact helpline, a national team to help with any well-being concerns during an inspection, and an ‘inspection welfare, support and guidance hub’.
An independent evaluation process has also been launched to monitor the implementation of the new inspection framework. This process will gather evidence from education providers on whether Ofsted’s aims have been realised (i.e. whether the framework has sufficiently reduced the workload on staff and whether inspections produce a more accurate reading of a provider’s performance). As part of the evaluation process, interviews will be conducted with providers in Spring 2026 to understand any early or unexpected impact arising from the implementation of the framework. A rolling survey will also be established in 2026-27 to gather the views of education providers on inspections with a final evaluation report published in 2027.
While the inspection process is likely to result in higher scrutiny of a provider’s performance in individual areas, it is also likely to give high-quality providers a clearer platform to demonstrate good practices. It is imperative that providers align their internal processes to the new framework’s core areas of focus. Monitoring their own performance against these areas will ensure that providers are well-equipped to achieve high ratings once full inspections begin under the new framework.
If you would like to discuss Ofsted’s new inspection framework in more detail, please reach out to Joshua Owolabi at joshua@gkstrategy.com.
GK’s Associate Director, Will Blackman, shares his take on the Conservative Conference.
This year’s Conservative Party conference – Kemi Badenoch’s first as party leader – was a major test for the party that has struggled to find its sense of direction after its catastrophic election defeat last year. Against a background of plummeting polling numbers, and criticism of what some see as Badenoch’s low energy and lethargical approach to the job, the opportunity was hers to lose. A successful conference was necessary to stabilise the ship and shore up her position, at least in the short term.
The conference began with a conveniently timed announcement of a new party policy – to leave the European Convention on Human Rights. Other headline grabbing announcements then followed; including a pledge to remove 750,000 illegal migrants, cutting overseas aid to 0.1% of gross national income, and £47bn of cuts to government spending, including welfare. These were preceded before the conference by a pledge to repeal the Climate Change Act 2008, which Badenoch said “tied us in red tape, loaded us with costs, and did nothing to cut global emissions”.
What these policies do tell us is that the Conservative Party has decided where it wants to focus its electoral energies. New policies that are thinly veiled replicas of longstanding Reform or Farage positions, including on migration, aid and net zero, are evidently not intended to appeal to so-called ‘blue wall’ voters that the party lost to disastrous effect to the Liberal Democrats at the last General Election. Instead, the so-called ‘red wall’, where Reform is increasingly at its strongest, it would seem is where the Conservatives want to apply their focus. How far this strategy can take the party, which continues to be out-polled by Reform by more than two-to-one, will be the defining story of the Conservative Party in this parliament, and of Badenoch’s leadership.
The conference itself was something of a mixed bag. Footfall was clearly significantly down on previous years, with reports of fringe events being cancelled and photos of a half empty conference hall on social media, all adding to the general sense of malaise. However, on the whole, shadow cabinet performances were fairly assured, with no major missteps or negative headlines. To that extent, the conference largely delivered what the party leadership needed it to.
The dog that didn’t bark during conference was further high-profile MP defections to Reform; much speculated about in recent weeks and hinted at by Nigel Farage himself following his own party’s conference. Whether it was ever true or if it was a case of cold feet, the Conservative leadership will have breathed a sigh of relief, at least for the moment.
Badenoch’s own speech on Wednesday was, on all accounts, a good performance. It won’t have escaped some people’s notice that many of her policy commitments appear to involve reversing policy decisions taken by the last Conservative government, with those on energy and net zero being the most obvious. Nevertheless, it was a speech that delivered the goods for now and received a strong reception from those in the hall. The announcement that a future Conservative government would abolish stamp duty will be music to the ears of many party members. However, with the prospect of a Conservative government taking office any time soon looking highly remote, the more interesting question will be whether the Labour government feels under pressure to make any moves of its own in this area between now and the next general election.
On balance, Badenoch has probably given just enough on policy and performance to see off any immediate threat to her position. However it remains the case that next year’s local elections will be the crunch electoral test for Badenoch’s leadership. Whilst some of the murmuring may fall away for now, without a significant positive change in the party’s polling position and as MPs grow increasingly concerned about losing their own seats, her longer-term future remains far from secure. Having only lost office last year, the Conservatives need more time for memories to fade on their record in office and to benefit from the failings of the Labour government. Unfortunately for Badenoch, with little discernible movement in the polls, time is not on her side.
GK’s Thea Southwell Reeves examines how Labour has placed early years at the heart of its social mobility agenda by focusing on high-quality, education-led provision.
Early years is a priority for government and has been since it first entered office last year. High quality early years education is a cornerstone of the equal opportunities ‘mission’ to break the link between a child’s background and their future success. Bridget Phillipson had championed early years long before the election and the appointment of the first ever early years minister was an indication of the priority it would have in the new Department for Education (DfE).
Although several of Labour’s early years policies have continued the work of previous governments, this government’s key ideological shift is away from seeing childcare as simply an economic issue to a focus on the provision of high-quality early education as a driver of social mobility. Addressing regional gaps in childcare provision known as ‘childcare deserts’ is fundamental to this, as is increasing the focus on quality to close the growing disadvantage gap in school readiness.
During its first year, the government’s priority has been implementing the final stages of the funding entitlements roll outs, which were completed this month. Now, eligible working parents of children aged 9 months to 5 years are entitled to 30 hours of funding per week. Overall, the expansion of funding has driven demand for spaces. The government had set a target of creating 85,000 new early years childcare places by September 2025 to support the roll out of funding expansions. It is not yet clear whether this target has been met, butInitial analysis suggests that most of this additional capacity has been concentrated in areas where provision already exists rather than creating new capacity in childcare deserts.
The government’s schools-based nurseries programme is designed to focus new provision in disadvantaged areas with 189 of the 300 government-funded new or expanded in-school settings opening this month. About 10% of school-based nursery provision is delivered by a PVI partnership. The second phase of funding is now open for applications and is prioritising high quality bids from schools in the most disadvantaged communities.
What’s next for early years?
The funding rates to deliver the government-funded childcare have always been contentious, with the industry maintaining that the funding simply does not reflect the true cost of provision. This has led many providers to use additional charges to ‘top up’ their income but the government has pushed back on this, revising the guidance around chargeable extras earlier this year. In its new strategy for the sector, published in July, the DfE announced a full review of early years funding, including the merits of national funding formulae. It will consult on proposals by summer 2026 and businesses should be monitoring and contributing to this process. The strategy also includes plans to increase the funding available to providers to support children with SEND and improve the way funding is allocated as part of the government’s wider reforms to the SEND system. More detail will be set out on this in the schools white paper this autumn.
The early years strategy, for the first time, raises DfE concerns about a rise in large providers backed by private equity. These providers, according to DfE, ‘are less likely to operate in deprived areas…and over time this can result in price rises and disruption to services.’ At the heart of this is a concern about market exits that could destabilise regional childcare provision. Policymakers will continue to monitor the financial sustainability of the early years market and may take further steps to increase market transparency if appropriate. This could include measures like those being taken in adult or children’s social care, such as a financial oversight mechanism. For businesses and investors, monitoring the development of this policy thinking and engaging with the policymaking process is vital to minimising any risk associated with such policy change, as well as realising commercial opportunities.
If you’d like to discuss early years policy in more detail please reach out to Thea on thea@gkstrategy.com
As the party departs Liverpool, still clearly grappling with the challenges of what being the party of government brings, we’ve learned a lot about the direction the party is going. Here are our quick takeaways.
Keir Starmer has shored up his position…for now. With the noise going into this conference all about the leadership challenge from Manchester’s Andy Burnham, the sight of his early departure from conference before the PM’s speech will please No.10. In what could have been a perilous week for the PM, strong reaffirmation of the Chancellor’s fiscal rules, coupled with strong defences from cabinet ministers and aides, resulted in Burnham conceding that Starmer is the “right person for the job”. You can’t help but add the line “for the moment…” with other rising stars like Shabana Mahmood and Wes Streeting clearly biding their time.
Labour is taking the fight to reform. In what was probably his strongest speech as party leader, Starmer clearly set the parameters for British politics. For him, this is about Labour vs Reform. Decency vs division. Ultimately, the class-conscious speech was a deliberate attempt to win back the working class that has increasingly abandoned the party over the years to the likes of Reform. In this more combative approach, he also decried Reform’s policies on immigration as “racist”. A punchy line of attack which worked in the room, but he will hope doesn’t unravel as a perceived attack on all Reform sympathisers who are doubting the centrist parties’ ability to deliver.
The looming budget has not got any easier. In media briefings over the weekend, and in her speech, Rachel Reeves continued the manifesto commitment to not raise taxes on working people. Whilst at the same time, to appease critical voices in the Labour party, she is flirting with the idea of more spending – both on infrastructure and lifting the two-child limit. She said she is a chancellor that wants to invest. None of this sounds like a chancellor staring down the prospect of having to find £30bn in November to plug the gap predicted by the OBR.
The difference a Labour government makes. This has been the underlying strategic narrative of the conference to fend off criticism there is no difference between this government and a Conservative one. We saw speech after speech rattle off long lists of tangible activities the government has taken across the policy spectrum. We can expect much more of this narrative to come, together with a clear focus on ‘showing’ that delivery to the electorate, rather than just ‘telling‘ them.