The country has spoken! The new PM is in the House, what will it mean for UK business?

The Conservative Party has lost in a historic landslide Labour Win. As the dust of the election race settles and a new PM moves into the Nr. 10, let’s look into what the new Labour Government will it mean for UK business.

The election of a new Labour government in the UK is expected to bring several changes that will impact businesses across the country. Here are some key aspects:

Tax Policy:

✔In their own words, Labour plans to cap the corporation tax rate at 25% and maintain full expensing, which allows businesses to deduct capital expenditures from their taxes.

✔It is also expected that within the first 6 months in power, the party intends to publish a business tax roadmap, detailing changes to corporation tax reliefs and capital allowances over the next five years.

Support for Small Businesses:

✔As a part of their election pledge, Labour aims to replace the current business rates system with a new property tax system that is fairer to high street businesses compared to digital multinationals.

✔They have also announced their plan to introduce measures to ensure small businesses have access to banking services and address issues like late payments from larger companies.

✔Among other initiatives is opening up competition for public contracts and boosting exports are also on the agenda.

Partnership and Engagement with Businesses:

✔Labour emphasizes a long-term partnership with businesses, involving them in policy-making processes through structures like the Council for Economic Growth and the Industrial Strategy Council.

✔There will be a focus on transparency and early consultation to ensure businesses are well-prepared for new regulations and policy changes.

Green Initiatives and Sustainable Growth:

✔A key part of Labour's green strategy is to make the United Kingdom a leader in clean energy, with plans to accelerate the transition to net zero and support sectors involved in renewable energy and electric vehicles.

✔They propose creating a National Wealth Fund to attract private investment for green infrastructure projects.

Skills and Employment:

✔Labour aims to address skill shortages by establishing Technical Excellence Colleges and reforming the Apprenticeship Levy into a more flexible Growth and Skills Levy.

✔They plan to work closely with businesses to ensure training programs are aligned with local job market needs.

Regulatory and Infrastructure Changes:

✔Reforming planning laws to expedite infrastructure projects and building homes is a priority, supported by the creation of the British Infrastructure Council to advise on these initiatives.

✔Digitalization of the tax system is intended to reduce complexity and improve efficiency for businesses.

Overall, the Labour government's policies are designed to create a more supportive environment for businesses, focusing on stability, growth, and collaboration between the public and private sectors. These changes are expected to address some long-standing issues and foster a more dynamic and competitive business landscape in the UK.

Still, it's a long way to go, for the Labour Party has 4 years to to prove to the British public they have made a right choice and to deliver on their promises. If you are interested in Registering your Limited Company in the UK, but require more information or guidance, why not call us on +44 (0) 207 935 5171 to discuss your questions or to Apply for a Consultation. Our experienced and highly professional business support team is here to help!