Tag Archives: Labour party

Unlocking the built environment

Angela Rayner has unveiled two flagship pieces of policy that will shake up planning policy and the local government architecture to get growth going. Senior Associate Sam Tankard takes a look at what impact this might have for businesses that operate in this sector.

Housing, planning and the local government system have long been identified by Keir Starmer’s Labour party as major constrictions on growth, and he has talked before about taking a “bulldozer” to the planning system. His Chancellor Rachel Reeves has also cited the desire to get Britain building as a key, and relatively low cost, lever to unlocking growth. Over the last week, we’ve seen the culmination of this with Angela Rayner, arguably one of the most powerful cabinet ministers, presenting her two-step solution to injecting impetus into councils and the wider built environment.

Backing the builders

The updated National Planning Policy Framework was published on 12 December and is seen as the key to unlocking 1.5 million new homes. The most significant change is to mandatory housing targets which will see many councils, particularly leafier constituencies and suburbs, deliver as many as 5 times the number of new homes per year than they currently are under Local Plans, as she calls on councils to all do their bit to meet their housing need, as the question is shifted to “where the homes and local services people expect are built, not whether they are built at all.”

The Government sees prioritising low quality “grey belt” as key to this housing mission and is supporting these new changes with £100m for extra planning officers to speed up and deal with bottlenecks in the system.

Tackling the blockers

The structure of councils has been long overdue a refresh and given how many of this Labour parliamentary party come from local authority backgrounds, it is no surprise to see a Labour Government bring forward a “devolution revolution”.

The English Devolution White Paper – which will form the basis of the English Devolution Bill in 2025 – proposes more powers for combined Authority Mayors who will receive new integrated funding settlements covering housing, growth, retrofit, transport and skills and employment as the Government wants to empower local leaders and shed Whitehall control. However, Rayner will still have increased call in powers if significant projects are not making necessary progress.

It is also clear the Government hopes this will deal with some of the inefficiencies in the way councils deliver public services and procure contract support, which will be welcome to businesses who support local authorities. As such, many two-tier council areas will be replaced by unitary authorities, where boundaries are hindering ability to deliver public services.

Growth unlocked?

Rayner will hope that these reforms will address the bureaucracy that Whitehall and local government process has burdened on public service and housing delivery, and help unlock the investment desperately needed across huge swathes of the built environment. If successful therefore, businesses operating at this intersection of housing and councils should take confidence that healthy opportunities are on the horizon. The next challenge will be where will all these builders and engineers come from…

New Government, Same Challenges: Why the early years sector needs to engage with Labour

GK Adviser Noureen Ahmed considers Labour’s approach to the early years sector and why it is so important for providers to engage with the government.

Earlier this month, the Prime Minister Keir Starmer outlined his ‘Plan for Change’ in which he set out the six metrics he would like to hit by the next election. This was an important moment for Starmer to demonstrate to voters that his government means business after a turbulent five months in office. Starmer’s education metric, to ensure 75 per cent of five-year-olds are school-ready, falls under the government’s mission to break down the barriers to opportunity. This is one of five missions Starmer set out prior to the election in which he promised to bolster opportunity for all through improvements to the education system.

Early years education has long been a priority for Labour, with Starmer’s education team having been incredibly vocal about the sector in opposition. Even though much of the initial focus has been on delivering the previous government’s early years reforms, notably the rollout of the extended childcare entitlement, the new government is clearly preparing the sector ahead of launching its own early years agenda, as laid out in Labour’s general election manifesto.

Whilst the spotlight on the sector has been welcomed, some immediate concerns have been expressed by sector leaders, including: whether the government’s schedule to roll out the final stage of its extended childcare entitlement to up to 30 hours go ahead as planned in September 2025, and if the government can deliver its additional pledges for the early years sector successfully over the course of this parliament.

The recruitment and retention crisis facing the early years sector is the biggest barrier impacting the delivery of the extended childcare entitlement. Difficulties attracting people to work in the early years sector, coupled with an exodus of staff, means it is unsurprising early years professionals are sceptical about whether the final rollout will go ahead as planned. The Department for Education’s (DfE’s) recent announcement that it will provide £75 million in grant funding to help childcare providers deliver the staff and places needed next year is positive and suggests that the government is determined to launch the final stage on time, despite these challenges.

There was also some welcome news at the October budget with the government announcing £15 million in investment to begin the delivery of 3,000 school-based nurseries by the end of this parliament. Schools currently have the opportunity to bid for up to £150,000 to either expand existing nurseries or open a new one, with the government hoping to open around 300 new or expanded nurseries by September 2025.

Education secretary Bridget Phillipson has reiterated government’s appetite to deliver more school-based nursery provision. Making use of unused classrooms in primary schools looks like a sensible policy approach. However, the government could find it difficult to meet the commitment’s short- and long-term targets. Getting enough schools on board with the scheme could prove difficult. Even though there may be capacity to utilise the free classroom spaces available, the infrastructure (both physical and logistical) needed to create and maintain nursery provision is very different to those needed for primary school pupils.

The Labour government is also realistic about the need for a model which includes both state-delivered provision via in-school nurseries and maintained nurseries and provision by the private voluntary and independent (PVI) sector in order to meet capacity demands. In regard to the latter, the government understands the importance of the PVI sector in delivering high-quality early years education and so will be keen to work with the sector to deliver much of its proposed in-school nursery provision.

Moreover, Ofsted has said it will work to support the government’s plans by making it easier for high-quality providers to set up and expand nurseries. The watchdog’s plan to streamline the registration process for providers as well review how it inspects and regulates multiple providers is laudable because it allows the sector the chance to continue meeting the demand for early years settings.

The government has made a big play that in total will see investment increase by over 30% compared to last year, all whilst happening amidst a bleak fiscal outlook. This political priority as the education secretary has acknowledged must be accompanied by reform to deliver a sustainable early education system. This will mean high quality providers demonstrating value for money and their ability to scale up provision. Those providers with a proven track record and an ambition for growth will find a receptive ear within DfE and No 10. With the next phase of rollout in 2025 and the comprehensive spending review in the spring setting out the funding for the remainder of this parliament, providers have no time to waste. They should prioritise engaging with government to position themselves as a partner in the next phase of reform, and to demonstrate the role they play in ensuring a successful delivery.

The GK Post-Election Breakfast Event

GK Strategy Adviser Rebecca McMahon reviews the GK Post-Election Breakfast Event.

The coming weeks and months will see the new Labour government pressing ahead with its agenda for government, and getting to grips with a number of difficult challenges facing the UK, from sluggish growth, to growing NHS waiting lists, to precarious local authority finances.

GK Strategy was delighted to host a panel discussion this week looking at how the government will tackle some of these issues, and how it will prioritise its time and resources to deliver on its ambitious policy pledges. GK was joined by former Minister and Health Select Committee Chair, Steve Brine, and Head of Research at Labour Together, Christabel Cooper, who shared their insights into the government’s approach, and some of the inevitable obstacles it will face in the coming months.

Both panelists agreed that while the list of public policy challenges inherited by Starmer and his team is by no means a short one, Labour ministers will now be deciding on areas where urgent action is most needed.

Reforming the UK’s planning system was identified as one of the priority areas for Starmer’s new administration. Our two panelists noted that the new Government’s ambition in this area has already been illustrated by repealing the de facto ban on onshore wind, re-introducing mandatory housing targets, and pledging to update the National Planning Policy Framework via consultation by the end of the Party’s first month in power.

As a policy area with implications for multiple sectors – including housebuilding, the green economy and major infrastructure– planning reform to unlock private investment will be at the core of the new Labour Government’s agenda. As Chancellor of the Exchequer Rachel Reeves set out in her first speech following her appointment, its ultimate success will rely on “unlocking private investment that we so desperately need”.

Healthcare and the future of the NHS was another policy area which featured prominently. Steve Brine pointed out that under current spending plans, funding for the health service is projected to rise at a lower rate than during the austerity years. Meanwhile, the NHS Workforce Plan continues to be underfunded and the outcome of the Health Secretary’s talks with the junior doctors uncertain. He noted that while the Government will soon have to make difficult spending decisions, there would be an emphasis on creating an investor-friendly NHS to support Labour’s ambitions to “crowd in” private investment to improve efficiency and health outcomes.

There was a consensus that Labour’s perspective on the use of the private sector in supporting the delivery of public services is a pragmatic one. Labour’s ‘wide but shallow’ majority – achieving 64% of parliamentary seats on roughly 34% of the vote – means that the Party will need to reassure voters that it is making headway on its policy programme. Our panelists agreed that working with the private sector will be key to successfully demonstrating this.

Please do get in touch via rebecca.mcmahon@gkstrategy.com if you are interested in attending future events or would like to set up a call to discuss the year ahead in politics.

Women and Health – Why women are such an important demographic for Labour

GK Adviser Noureen Ahmed reflects on the Government’s priorities in its Women’s Health Strategy and explores the challenges Labour can expect to face in the women’s and wider health space should the party form the next government.

At the start of 2024, Health Secretary Victoria Atkins outlined her top priorities for 2024 under the Women’s Health Strategy, which came into effect two years ago. The Strategy was welcomed by the sector, due to the Government demonstrating its commitment to improving care and treatment for women. Women are routinely under-represented, particularly when it comes to clinical trials; this hinders our understanding on how a number of health problems such as cancer, endometriosis, and other gynaecological conditions impact women from a wide range of backgrounds. As women make up around 51 per cent of the population, tackling these obstacles is vital to ensuring improved outcomes for women’s health.

Under the Government’s priorities for women’s health this year, there are several initiatives expected to be implemented. These include plans to expand women’s health hubs, bolster pre- and post-natal care as well as improve support for vulnerable women. The Government has also committed to more funding for research, which would look into how women are represented in medical research.

Nevertheless, given how close we are to the next General Election (likely in October or November of this year), questions have been raised on whether such policies will actually be enacted over the coming months.

The priorities for 2024 came as a result of a Government consultation which aimed to learn more about women’s health issues, and to better understand women’s experiences of the healthcare system. The call for evidence received over 100,000 responses and demonstrated a clear consensus that health services at present fail to meet women’s day to day needs. The Women’s Health Strategy has been deemed ambitious, given it aims to “radically improve the way in which the health and care system engages and listens to all women and girls.” For the Government, the Strategy is much needed and will form “the next step on the journey to reset the dial on women’s health.”

The Labour Party has stressed its ambition to prioritise women’s health should it come into power, as well as to ensure all women – regardless of their background – have access to better quality care. In addition to its pledge to invest in women’s health services, Labour also confirmed its plans to increase access to reproductive healthcare, address gender inequalities in healthcare settings, and ensure women’s health services are equipped with the vital staff and resources needed.

As the likelihood of a Labour Government increases in the run up to the next General Election, Labour faces the challenge of demonstrating how it will ‘revive’ the NHS, with the health service having been chronically stretched and underfunded over the past decade. At present, the NHS faces a raft of issues related to recruitment, staff pay, industrial action and waiting lists which remains stubbornly high – prompting more people to take out private medical insurance. Should Labour come into power, the party will be undertaking a huge task to alleviate the crisis but will be limited in terms of how much substantial progress can be made by financial constraints.

Women make up a significant proportion of the population and so, inevitably, their choices greatly influence election outcomes. For Labour in particular, women’s votes will be essential if it wants to secure an electoral majority. It is imperative that the party works to engage effectively with women and ensure their concerns and aspirations for women’s healthcare are listened to and used to develop and implement effective policy.

GK Strategy are experts in the health policy landscape. Get in touch with noureen@gkstrategy.com if you’d like to hear more from our consultants.

Reflections on the Future of Council Tax

GK Associate Hugo Tuckett assesses the likelihood of council tax reform amid rising concern about local authority financial resilience.

Is council tax reform on the horizon?

Amid rising bankruptcies in recent years, and growing concern about the sustainability of council finances, funding mechanisms for local authorities – and particularly council tax – are attracting growing political scrutiny.

In December 2023, the Local Government Association reported that almost one in five council leaders and chief executives it surveyed think it is very or fairly likely that they will need to issue a Section 114 notice this year or next due to a lack of funding. A Section 114 notice is issued by a council’s finance officer if they believe the council’s expenditure will exceed the resources it has available. Eleven Section 114 notices have been issued since 2018, with only five issued in the 30 years prior.

Given that council tax receipts now make up over half of local authority spending power (56.9% in 2023-24 compared to 49.1% in 2015-16), ensuring the council tax regime is operating effectively is critical to the long-term sustainability of local authority finances.

The Levelling Up Committee recently made a series of recommendations to the Government on council tax reform. In its report, the Committee reiterated its previous conclusions about the “unfairness and outdatedness of the council tax regime”.

The Government has since said it has no plans to conduct a revaluation of council tax bands (the Committee’s key recommendation) as, amongst other factors, “it would particularly risk those on a lower income, including pensioners, who have seen their homes appreciate in value”.

Here is the focal point of political discourse. A Conservative Government, aware that (according to recent YouGov polling) the Party is now the most popular only among the over-70s, will be aggrieved to conduct a revaluation of property bands which would hit the pockets of its core voter base. A Labour government on the other hand, with traditionally greater allegiances to younger, non-home owning voters and those on lower incomes could take a fresh look at this issue. One option likely to be under consideration is the introduction of new, higher bands of council tax.

Given the Shadow Chancellor, Rachel Reeves, has ruled out numerous tax rises ahead of the upcoming General Election, council tax reform represents one revenue-raising lever still available to her. While the details of any potential reform are still unknown, it is a near certainty that the council tax regime will only grow in political salience in the years ahead.

GK Point of View – Tory and Labour priorities in 2024

GK Senior Adviser Robert Blackmore and Adviser Noureen Ahmed assess the priorities for the Conservatives and Labour in 2024 as we make our way closer to a general election.

The Tory plan to build back core support

The Conservative Party begins 2024 in dire straits, over 20 points behind Sir Keir Starmer’s Labour in the polls, they are running out of time to avoid a chastening defeat. Party leaders are therefore concentrating their efforts on ensuring they have strong support with the Party itself, while strategists desperately try to home in on the clearest path to victory, reducing illegal immigration via the Rwanda scheme, and providing tax cuts.

Much of the Government’s political capital is being spent on making its plan to send some asylum seekers to Rwanda for processing a reality. The updated Rwanda Bill has now reached the House of Lords, where intense opposition is expected. For party strategists, it provides the Conservatives with an opportunity to weaponise the debate and highlight the immigration and Brexit-related tropes that dominated the political debates in the late 2010s.

However, the political salience of the small boats issue to the wider country, as opposed to the party’s rank-and-file, is not yet clear. That is why the Party is so keen to ensure voters feel economically empowered, as the next election approaches. With the Spring Budget scheduled for 6th March, there are a number of tax cuts that Chancellor Jeremy Hunt has been considering in recent weeks, including further cuts to national insurance, cuts to income tax, and an increase in the child benefit threshold. The Chancellor, however, has been managing expectations about how feasible these may be, with the likelihood that the degree of fiscal headroom in March will be lower than expected. A fourth category, cuts to inheritance tax, is also now deemed less likely, as the Prime Minister fears it could be portrayed as a tax concession to the wealthy.

Yet, such a strategy is dependent on the electorate’s support for the Government after 13 years in power. Will they show gratitude to the Government for providing extra pounds in their pocket and vote accordingly? The tax burden is the highest it has been since the Second World War, and, according to the Resolution Foundation, wage stagnation represents a real-term decline in take home pay for many households since 2008. Given these challenges, it is not guaranteed that the Conservatives’ strategy will cut through.

It’s in the bag for Labour surely?

As the next general election looks increasingly likely for late Autumn, the Labour Party is planning to finalise any manifesto commitments by mid-February (in the unlikely scenario that the PM announces a May election). Although the Labour Party requires a significant electoral swing to claim a majority, it has been buoyed by recent polling indicating that Labour are firm favourites to lead the next government. As a result, many in Labour HQ are optimistically planning the Party’s campaign strategy.

In 2023, Labour Leader Sir Keir Starmer unveiled his 5 national missions that the party will build its manifesto around. Core missions include Labour’s ambition to support the NHS to get back on its feet and break down barriers to opportunities.

Unsurprisingly, education has remained at the forefront of Labour’s core priorities, with the Party recently unveiling its plans for schools, further education, and the early years space. The Party is determined to introduce reforms to support the development of young people and better prepare them for adulthood.

The NHS is regarded as an area of strength for the Party, with the public almost always preferring Labour’s handling of the NHS. Given the widespread awareness of ongoing crises, such as doctors’ strikes, long waiting lists and inaccessible GPs, the Party is letting the national story do the campaigning for them, with scant few serious pledges on health and social care policy. Shadow Health Secretary, Wes Streeting, has promised to work to address the fundamental issues, with promises made by the Party to boost funding investment, cut down waiting lists and improve staff recruitment.

However, further information on reforms have not been made public – many at Labour Party HQ worry that a detailed proposal may just offer the Conservative Party a “free win”, by giving it something to critique. The manifesto will shed light on where their focus may lie on health, but it’s unlikely that Labour will reveal its plans in full before taking power. Nevertheless, Labour has now started talks with the civil service and is finalising policy. We expect Labour to accelerate its campaign plans and attempt to present itself as a calming presence in contrast to the continuing Tory storms.