It’s party conference season and Mr Starmer warns of ‘unpopular decisions’, whilst Ms Reeves’ optimism for Britain burns brighter than ever’. Conference speeches over, bring on the Budget.
Policy lite – Vision heavy
Mr Starmer’s measured and sober delivery promised a ‘decade of renewal’, ‘politics that can be a force for good in people’s lives’, ‘light at the end of the tunnel’ but ‘it will be hard’. Is this a precursor to a bleak Budget or something with less bite than bark?
Meanwhile, Business Secretary Reynolds is preparing a proposal to make flexible working a right by default (including working from home). This is somewhat at odds with Ms Reeves’ work hard mantra, I’m in 5 days a week to set an example approach. Coventry based flooring manufacturer Amtico (a recent Coventry & Warwickshire First Friday) CEO Jonathan Duck, was in the weekend press urging caution on plans to give workers more employment rights, given competition is with workers further afield, not an EU workforce who enjoy more flexible benefits.
With a public sector pay bonanza, small businesses fear even greater recruitment problems as public sector employment looks more lucrative. MPC member Catherine Mann says we should not be seduced into thinking the battle against inflation is over, especially given the soon to be renationalised 6.20am to London Marylebone driver is now on £80,000 a year.
Taxing times ahead
Will the handbrake be taken off a 13-year fuel duty freeze adding £3bn to the Treasury coffers to help plug that £22bn ‘pot’ hole? Unsurprisingly the polls show that voters are not in favour of being pumped for extra cash. Reversing Rishi’s 5p emergency cut and a return to indexation perhaps?
Talking plugs, Pimlico Plumber founder has joined some 4,200 millionaires who have decided to permanently bask in the sun this year alone. Concerned his finances may take a bath on speculation that Labour could align capital gains tax rates with income tax rates.
Ms Reeves mentioned growth 15 times in a speech only days after Labour’s landslide. Indeed, stronger growth improves the public finances. In the 1960s, average GDP growth per head was 2.8%, today that stands at 0.3%. In the noughties, this stood at 1.1% at a time when national debt stood at 30% of GDP. Today, the national debt stands at 100% of GDP, that’s a 230% increase – not much budgetary room for manoeuvre.
There will be no ‘Gray skies’ ahead, no return to austerity, Labour a party of economic responsibility who will not raise taxes on working people. That’s a tougher ask as income tax and NI thresholds are frozen until 2028 so the average worker will feel it somewhere. A Budget for investment, this government is about ‘change’ (Dafferns have got a diagnostic for that!).
All agreed there is a need to kickstart the economy but is 118 days long enough to build enough political capital so people can swallow some of those harder budget choices. The older voter may think not.
All politicians are fashionable, but some are more fashionable than others!
In 1984 leggings, neon bracelets, big belts, oversized hair and Swatch watches were in. While Rachel may have trousered £7,500, Angela favours a London centric luxury designer brand with a Labour link, pocketing a mere £2,230
From behind his Lindberg Danish designer spectacles, Mr Starmer sees his primary job as restoring ‘Trust in Politics’. Actions need to match the messaging, especially as 40% of the voting public could not be bothered to vote 82 days ago. So ‘Are you being served’, a reference to 1970s fictional Grace Brothers clothing department store maybe, but the PM insists his ministers are all about service – we’re not as bad as the Tories is not a policy.
Arguably good news for Coventry & Warwickshire, Shein (the world’s most popular fashion brand pronounced ‘she-in’) is looking to open its first UK warehouse in the Midlands golden logistic triangle. With an average clothing item costing £7.90, Ms Raynor could have saved a mint and had 282 new outfits. I’m off to get a pre-loved cardy from Vinted, might be a bit chilly this winter for us more senior citizens.
Perception in politics is everything – best look the part!
Simon Cossey is Dafferns’ Business Development Consultant and any political views in this post are his own.
