Skip to content
Monday 10 August 2026London --:--Frankfurt --:--Zurich --:--
NewslettersSearchEN · DE
MorningWire

European business, markets and politics

FTSE 100
10,901.09
+0.31%
DAX
26,319.45
+0.69%
CAC 40
8,714.93
0.00%
STOXX 50
6,523.86
+0.33%
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
More
GermanyFranceBankingAIEnergyFintechPropertyCapital Markets
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
  • DE
Tuesday 20 August 2024 6:00 am  |  Updated:  Monday 19 August 2024 5:35 pm

The Notebook: So, when does Labour actually become pro-business?

By: Michael Martins

Add as a preferred source on Google
Prime minister Keir Starmer and Chancellor Rachel Reeves.
Prime minister Keir Starmer and Chancellor Rachel Reeves have piled pressure on regulators since coming to power last July

Where the City’s movers and shakers have their say. Today, it’s Michael Martins, founding partner at Overton Advisory, with the notebook pen, asking Labour to start walking the walk when it comes to being pro-business

So, when does Labour become more pro-business?

One of Labour’s key electoral successes last month was its almost complete takeover of pre-election business support. Most businesses fawned over themselves to have a Labour heavy-hitter or up-and-comer attend a site visit or signal support of their key policy issues. Following these meetings, Linkedin would light up with lobbyists trying to outdo each other in their claim of how pro-business, pro-investment and pro-growth Labour was in the hope of being given future policy favour and access.

So, I have to ask: when does Labour actually become more pro-business?

A little over a month into the job, Labour’s biggest achievements so far are a de facto ban on North Sea energy investment (even as some expect imports of more emissions-intensive energy to increase), a double digit, multi-year pay rise for a fifth of the workforce (spending billions on increasing inflation, rather than productivity enhancing capital investments), allowing energy secretary Ed Miliband to pick billion pound winners in the renewables sector, and confirmation that the party intends to make it harder for employers to hire by bringing in employment rights from day one.

In return, businesses have been told that the Chancellor has the worst economic inheritance in modern history and that most worker-affiliated taxes are not going up. That points to higher, or potentially even new, taxes for businesses, even as the Bank of England has started to cut interest rates ahead of what they think is a likely economic slowdown.

Granted, most of the government has gone on a month-long holiday after their first three weeks in the job, so it’s difficult to know for sure which taxes will go up and which will just stay high. But so far, it’s been difficult to square how the new Chancellor can claim poverty on the one hand and then give billions of pounds to millions of public servants on the other. Hopefully some of the more business-minded ministers in cabinet like Jonny Reynolds and Darren Jones will begin winning the arguments. 

Strategic Defence Review needs a public submission deadline

One of defence secretary John Healey’s first acts was to announce a Strategic Defence Review, an early step to flesh out Labour’s defence policy agenda. Helpfully, Healey made it clear that he wants as much industry and ally input as possible to best position the UK for its evolving threat landscape. Unhelpfully, Healey seems to have forgotten to include dates and emails for when submissions will open and close, forcing lobbyists to rely on offhand remarks in the Lords to find the right secretariat address. 

Former spads are the new opposition

Many short-sighted lobbying companies are currently spurning former Conservative special advisers, but that hasn’t stopped many from taking on the role of opposition during the Tories’ arduous leadership contest. Ex-spads know just how the bodies are buried. Former Michael Gove spad Henry Newman, for example, recently scooped that the business and trade department (DBT) has axed all its non-executive director roles, severing a key link between the DBT and the wider business community, likely in a prelude to bringing in its own business backers. 

Full fat decarbonisation, please

Labour has made it clear that it wants to decarbonise the energy sector and system. Less clear, however, is whether it plans to shake things up at some of the places where energy is actually used and emissions created, like in buildings and non-energy sectors. For a government seemingly committed to moving fast and fixing stuff, perhaps a more general approach could help to unlock big investment projects, rather than creating sectoral ambiguity and uncertainty. 

Looking to escape? Read Children of Time

I accidentally booked most of my holidays during the general election campaign because I thought a summer election would be a foolhardy call at best for the now former PM. Silly me (or him), but as a result, I’ve been engrossed in Adrian Tchaikovsky’s Children of Time trilogy as a form of staycation escapism. Fans of the Three Body Problem series will love these Tchaikovsky books, which take place after a global civil war has destroyed Earth and forced the survivors to venture out into space to terraform planets into new habitable worlds. Along the way, humanity’s survivors must learn to co-exist with equally intelligent but wildly alien and sometimes hostile spiders, octopi and other uplifted species in this genre bending trilogy. 

Michael Martins is the founding partner at Overton Advisory

Read more

Burnham: I’ll be a pro-business Prime Minister

Andy Burnham speaking at Labour leadership event, addressing the audience with confidence and engaging in political discou...

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • Opinion

Categories

  • Opinion

People & Organisations

  • Defence
  • Department for Business and Trade
  • Labour
  • Labour Party
  • The Notebook

Related Topics

  • Labour Party

Trending Articles

  • Burnham facing calls to cut employment red tape as job seekers grow for 41 months

  • Government to inject millions into electric vehicle firms despite mandate backlash

  • Silence Therapeutics to Host Conference Call and Webcast to Discuss Topline Results from Phase 2 SANRECO Trial of Divesiran in Polycythemia Vera

  • Stop burying us in swollen corporate reports, says audit watchdog boss

  • Hargreaves Lansdown orders staff back to office

More from Morning Wire

  • Burnham: I’ll be a pro-business Prime Minister

    Politics
    Andy Burnham speaking at Labour leadership event, addressing the audience with confidence and engaging in political discou...
  • ‘Pro-business’ Burnham eyes Reynolds return to top business job

    Business
    Jonathan Reynolds addressing the SMMT's annual International Automotive Summit (image courtesy of SMMT)
  • Burnham scraps digital ID scheme

    Politics
    Andy Burnham speaking at a public event, emphasizing local governance and policy changes, wearing a suit and gesturing pas...
  • Burnham premiership begins with decline in job postings

    Economics
    Andy Burnham, Mayor of Greater Manchester, in a professional setting.
  • The Debate: should Andy Burnham have made a woman his Chancellor?

    Opinion
    Rachel Reeves delivering a speech at a press event, wearing a navy blazer and standing in front of a backdrop with logos.
  • Healey: Squeezed businesses also need ‘breathing space’

    Politics
    John Healey and Andy Burnham sampling beers at a pub bar
  • Three ways Andy Burnham can avoid Keir Starmer’s mistakes

    Opinion
    Andy Burnham, Mayor of Greater Manchester, speaking at an event
  • Miliband opponents pour cold water on Chancellor hopes

    Politics
    Ed Miliband outside Downing Street
MorningWire

Independent European business, markets and political news for decision-makers.

Morning Briefing

Europe

  • Germany
  • France
  • Europe
  • UK & Ireland

Business

  • Markets
  • Banking
  • Technology
  • Energy
  • Property
  • Fintech

Editorial

  • Opinion
  • Editorial Policy
  • Corrections
  • Contact

Company

  • About Morning Wire
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
© 2026 Morning Wire Ltd · Published by Morning Wire Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
Privacy · Terms · Cookies · Facebook