With the upcoming UK General Election set for Thursday, 4 July 2024, we believe it's crucial for our customers to understand what this means for their business's future. Whether you're just starting out or have been in your industry for years, navigating the impact of politics on your business can be challenging.
To help you stay informed, we've created a comprehensive guide to the General Election 2024, outlining potential changes and how they may affect you from both ends of the political spectrum based on Labour and Conservative manifestos.
What is a General Election?
Conservative Party Plans for Small Businesses
Labour Party Plans for Small Businesses
Other General Election Considerations for Businesses
What Are The Other Parties Plans for Businesses?
General Election FAQs
How instantprint Can Help Your Business
What is a General Election?
A general election is your chance to help choose the MP who will represent your local area (constituency) in the House of Commons for up to five years.
Each constituency will have several candidates to choose from, including those representing national political parties. The candidate who receives the most votes will become the MP for that area. As a business owner, it’s important to read each party's manifestos before placing your vote, deciding which party's plans best sit in line with your business needs and political interests.
So, here’s what the General Election could mean for businesses.
Conservative Party Plans for Small Businesses
The Conservative and Unionist Party, commonly the Conservative Party and colloquially known as the Tories, is one of the two main political parties in the United Kingdom.
Business Growth
Investment zones are a key part of the government’s strategy to boost local economies. Local leaders will be equipped with the resources to drive business growth in their areas.
Each investment zone receives £80 million in funding to enhance skills, infrastructure, tax reliefs, and business rates retention.
8 locations in England are eligible to host a UK investment zone:
- West Midlands
- Greater Manchester
- North East
- South Yorkshire
- West Yorkshire
- East Midlands
- Teeside
- Liverpool
Late Payments
As part of the Cash Flow and Prompt Payment review, the Conservatives aim to enhance reporting on late payments and strengthen the powers of the Small Business Commissioner. Payments are a barrier to growth and the Conservatives are determined to fix that. The measures they’re announcing will take a big step towards ensuring SMEs get their payments on time, helping firms to grow and prosper
Pensions
In times of high inflation, the future of the triple lock pension often comes into question. The Conservatives have announced their intention to uphold it, raising state pensions by 8.5%. Additionally, they plan to introduce a "triple lock plus," increasing the tax-free state pension allowance by at least 2.5%. This change aims to reduce the number of pensioners who pay income tax
Labour Party Plans for Small Businesses
The Labour Party is a political party in the United Kingdom that has been described as an alliance of social democrats, democratic socialists and trade unionists.
Skills Shortages
Labour aims to address the skills shortage by prioritising education and training. Their strategy involves transforming further education colleges into 'technical excellence colleges,' ensuring vocational training meets businesses' needs and generates new job opportunities locally. Additionally, Labour proposes replacing the Apprenticeship Levy with a new Growth and Skills Levy, offering businesses more flexibility in utilising funds for their specific skill requirements.
Startup Investment
Labour aims to enhance access to funding and investment for small businesses through several measures. They plan to empower the British Business Bank to invest more in small businesses outside of London. Additionally, by reforming the Enterprise Investment Scheme and Seed Enterprise Investment Scheme, they aim to improve their effectiveness in supporting early-stage businesses.
Moreover, Labour proposes establishing a ‘Scale-Up Taskforce,’ comprising government officials, academics, and industry experts. This task force will concentrate on refining policies that currently impede business growth.
Business Rates
Labour plans to overhaul the current business rates system with a new one that aims to "balance the burden and level the playing field between our high streets and online giants." They argue that their proposed system will revitalise vacant storefronts, encourage small business expansion, and alleviate the tax burden on these enterprises.
Minimum Wage
According to Labour’s manifesto, ‘Making Work Pay’ they plan to introduce a new deal for working people and deliver a genuine living wage, banning zero-hours contracts and ending fire and rehire. Because creating well-paid jobs across all parts of our country will make working people better off and more secure.
Other General Election Considerations for Businesses
Artificial Intelligence
Over the last 12 months, artificial intelligence has been at the forefront of our day-to-day, but what stance do the different parties take on the rise of AI?
The Labour Party is in understanding of the threat that AI poses, but they made clear that they also welcome it, wanting to ensure that businesses are offered both training and protection.
The Conservatives embraced AI in their March 2023 white paper, establishing key principles for regulation. These principles focus on safety, security, and robustness.
Sustainability
These days, environmentalism isn’t just a priority of the Green Party, both Labour and Conservative parties cover sustainability for the future of businesses in their manifestos.
If elected, Labour has plans to push for clean energy. This includes windfall tax on oil and gas companies on their excess profits to help with the cost of living.
September 2023 marked a significant shift in tone from the Conservative government on net zero however when Prime Minister Rishi Sunak announced a “more pragmatic, proportionate and realistic” approach to sustainability. The Conservatives' 'plan for drivers' outlines improvements for 20mph zones, emissions charges, and low traffic neighbourhoods, demonstrating their pro-motorist stance. This could benefit business owners who rely on driving for work.
Corporation Tax
In simple terms, corporation tax is a tax that's paid on any corporate profits, derived from running your business successfully and is a tax that all limited companies must pay.
If Labour takes the reins, they're keen on keeping the Corporation Tax steady at its current 25%. In their first six months, they've pledged to unveil a roadmap for future business tax strategies. Meanwhile, the Conservatives emphasise their commitment to bolstering businesses through reduced taxes. The upside is that it seems unlikely that Corporation Tax will climb any higher this year, regardless of the outcome of the General Election.
What Are The Other Parties Plans for Businesses
Although the Labour and Conservative parties hold the top spot currently, what do the other parties plan to put in place for businesses across the country if elected? Research from Simply Business highlights them below:
Reform UK
- reduce corporation tax to 20 per cent, then to 15 per cent in their fifth year
- increase the VAT threshold to £120,000
- increase the minimum profit threshold on income tax to £100,000
Liberal Democrats
- no increases to VAT or National Insurance
- incentivising businesses to invest in ‘new clean technologies’
- investing in skills and increasing the availability of apprenticeships to address the skills shortage
Green Party
- £3 billion in ‘Green Transition Grants’ to support small businesses in switching to greener energy
- making electric vehicles more accessible to business owners
- making childcare businesses exempt from business rates
SNP
- opposing an increase in VAT and National Insurance
- continuing the Small Business Bonus, with 100,000 business properties paying no business rates
- supporting the digital capabilities of creative businesses by investing £1 million into a programme of workshops
General Election FAQs
When was the last General Election?
The last general election was held on Thursday 12 December 2019.
When is the next General Election?
The next UK General Election has been called for Thursday 4 July 2024.
How often are General Elections held in the UK?
The government of the day can decide when to call a general election.
Who can vote in UK General Elections?
Whether you can vote in an election or referendum will depend on:
- your age
- your nationality
- where you live
- whether you’ve registered to vote
You can check the Government website here for more information.
How instantprint Can Help Your Business
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Election Campaign Materials & Political Supplies
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