The General Election has concluded in the UK and while the final outcomes are still being digested, it remains certain that shifts in a range of areas in many industries will affect businesses. Consequently, the key for any business leader is now to remain agile and adaptive. 

Although it’s not possible to predict exactly how regulations and laws will evolve in the coming months, acknowledging that change is on the horizon is the first step towards navigating Britain’s next political era successfully as a business.

We understand the significance of business transformation. Our services in this area allow businesses to grow and flourish in line with Government regulation and policy, to build partnerships and to take any change as an opportunity to grow and adapt. 

But despite how much is unknown at this point, it is fair to say that there are areas of legislation that are only going to evolve in the coming parliamentary term. So businesses need to be aware of these and ready to adapt and develop their own policies and strategies in these key areas. 

So, what are the critical areas?

There are several critical areas that any business needs to be considering in the coming months, that are increasingly topical and likely to be key areas that any new Government will be re-assessing.

Environmental, Social and Governance (ESG)

The ESG landscape is constantly evolving, in fact 88% of public companies have some sort of ESG strategy in place [1]. New sustainability regulations are designed to improve business transparency in the push toward Net Zero and a more sustainable future. ESG has become a core component of both a business’s daily interactions as well as their brand. In fact, over half of consumers are willing to pay higher prices for a product from a company with a sound ESG record [2]. Successful businesses need to get behind green policies and really consider how they are integrating them into their work and marketing image. We help clients and businesses identify opportunities to successfully execute their ESG strategies, whilst building partnerships and profile in this area. Our vast experience- over 15 years- mean that we are able to assist in embedding ESG strategies and work into the everyday mechanics of a business, facilitating transformation and sustainable growth. 

Digital futures

The digital world is only ever increasing in its significance, making it a top priority for any growing business. Social media, AI and Web3 all present hurdles and opportunities for a flourishing business. Tech has become so central to society that it is impossible to remove it from either a business or marketing strategy. The digital world is evolving constantly and politicians are keeping up with the slew of regulations and processes. It is therefore crucial to be able to adapt to any new digital transformation policies that come into force in the coming months. Our work in this area means that we are able to support and advise businesses in regard to digital changes. We work with our clients to incorporate new innovations, developing digital skills within a workforce or culture, or to provide assistance in harnessing cloud technologies, AI, or data and analytics. 

Economic Policies and Regulation  

A change of Government will directly impact businesses in regard to changes or shifts in economic policy or regulation, both in terms of potential changes to taxation or government spending. So there are a number of considerations to be aware of as a business. Corporation tax will of course affect a company’s profitability, whilst similarly regulations regarding employment will have a knock on effect in regard to the costs of keeping all your employees and other day to day operations. This can extend to other areas such as immigration or wage policy. Changes in these legislature areas will alter how a business can recruit and sustain staff. We understand the complexities that come with navigating these changes. As experts in workforce transformation solutions, we specialise in helping businesses adapt to new regulatory landscapes, through our people & performance services.

Generally, policies that lower business taxes and reduce regulation can spur business investment and growth. On the other hand, policies aimed at increasing taxes and tightening regulations may raise costs for businesses but could enhance government spending, benefiting the economy and your business in other ways.  Another area to be wary of is how the election may affect consumers. So it’s important to understand that the election may impact on how your consumers and customers spend or interact with your business, notably at a store front or retail level. 

In turn elections also impact the UK on a wider, international scale. They can change how businesses are valued in terms of currency or financial market terms, it is possible that this may trigger some volatility, so preparation and understanding of this is key to moving forward through any change when building pricing or margin strategies, particularly if you are interacting within international markets. 

Public Spending and Infrastructure  

Public spending is an important aspect of any new administration. It is possible that there will be a real shift in how the Government uses their spending priorities. Naturally, this will have a huge impact if you are a business that operates within this sector, for example cuts to public services will have a direct effect on businesses operating in the healthcare industry. As a business leader you therefore need to be able to adapt to these changes and the impact this may have on demand. 

A change in administration can significantly alter government spending priorities. The new government might focus on different sectors for public investment, affecting businesses linked to those sectors. For instance, increased infrastructure spending can benefit construction companies, while cuts in public services might negatively impact healthcare providers.  

The General Election certainly provides uncertainty but this is no bad thing. Instead the best and most successful businesses will adapt by finding space in change and transforming to meet any new acts or endeavours that the political landscape demands. But it is important to have an expert, external perspective on this. So, to find out more about how to meet change with agility, read more about our work in business transformation here. 

1) UCEM, 2024

2) KPMG, 2024