N※N

Show Business and Finance Publications

Reform's bacon and egg offensive to woo business

Labour's Charm Offensive: Bacon, Eggs, and Bold Reforms to Woo Big Business

In a bid to shed its anti-business image and position itself as the party of economic growth, Labour leader Sir Keir Starmer and Shadow Chancellor Rachel Reeves have launched an all-out charm offensive at the party's annual conference in Liverpool. The centerpiece of this effort was a high-profile breakfast event, complete with bacon and eggs, designed to court some of the UK's most influential business leaders. Dubbed the "business breakfast," the gathering symbolized Labour's determination to rebuild bridges with the corporate world after years of perceived hostility under previous leadership. With promises of sweeping reforms to planning laws, skills training, and infrastructure, Starmer and Reeves are pitching Labour as the stable, pro-growth alternative to the Conservatives, aiming to make the UK the fastest-growing economy in the G7.

The event unfolded against the backdrop of a conference hall buzzing with optimism, where executives from blue-chip companies mingled with Labour frontbenchers over plates of traditional British fry-ups. Attendees included heavyweights such as HSBC's chief executive Noel Quinn, Google's UK boss Debbie Weinstein, and representatives from tech giants like Microsoft and energy firms like Octopus Energy. The choice of menu—bacon sandwiches and scrambled eggs—was no accident; it was a deliberate nod to approachability, evoking the everyday concerns of working people while signaling that Labour is open for business. Starmer, addressing the room, emphasized that his party has undergone a profound transformation since the Jeremy Corbyn era, when policies like widespread nationalization and higher corporation taxes alienated many in the City.

At the heart of Labour's pitch is a comprehensive package of reforms intended to unlock billions in private investment. Starmer outlined a vision for "national renewal," promising to overhaul the UK's creaking planning system, which he described as a "major barrier to growth." Under Labour's plans, local councils would face stricter targets for approving housing and infrastructure projects, with a new "growth unit" in Whitehall to fast-track developments. This, Starmer argued, would address the chronic housing shortage and stimulate construction, creating jobs and boosting productivity. Reeves, taking the stage with her trademark poise, elaborated on the economic rationale. "We will be the most pro-business government this country has ever seen," she declared, vowing to provide the stability that businesses crave after years of Brexit turmoil, pandemic disruptions, and political instability under successive Tory administrations.

Delving deeper into the policy details, Labour's blueprint includes a radical shake-up of the skills and apprenticeship system. Reeves highlighted the need to align education with the demands of a modern economy, proposing a new "Skills England" body to coordinate training programs. This would replace the current fragmented approach, ensuring that workers are equipped for high-tech industries like renewable energy and artificial intelligence. On infrastructure, the party pledges to accelerate projects such as high-speed rail extensions and digital connectivity, with a focus on public-private partnerships to leverage private sector expertise and funding. Green energy forms a cornerstone of this agenda, with commitments to decarbonize the power grid by 2030 through investments in wind, solar, and nuclear. Starmer stressed that these reforms would not only drive growth but also address regional inequalities, funneling investment into neglected areas outside London and the Southeast.

Business leaders in attendance responded positively, albeit with cautious optimism. Noel Quinn of HSBC praised Labour's emphasis on stability, noting that "predictability is the bedrock of investment." He pointed to the UK's potential in fintech and green finance, suggesting that streamlined regulations could position Britain as a global leader. Debbie Weinstein from Google echoed this sentiment, highlighting the importance of skills reform in fostering innovation. "The UK has incredible talent, but we need a system that nurtures it from school to boardroom," she said. Other executives, however, voiced concerns about potential tax hikes. With Labour refusing to rule out increases in capital gains tax or employer national insurance contributions, some worried that the party's pro-worker stance—evident in its support for union demands on pay and conditions—could undermine competitiveness.

This charm offensive comes at a pivotal moment for Labour, as polls show the party leading the Conservatives by a wide margin ahead of the next general election. Starmer's team is acutely aware that winning over business is crucial not just for electoral success but for governing effectively. The memory of Corbyn's 2019 manifesto, which proposed renationalizing utilities and imposing wealth taxes, still lingers, and Starmer has worked tirelessly to distance himself from it. He has courted the City through regular meetings with financiers and even appointed former Bank of England officials to advisory roles. Reeves, a former economist at the Bank, brings credibility to the economic team, often drawing comparisons to Gordon Brown for her pragmatic approach.

Yet, the path ahead is fraught with challenges. Inside the conference, union leaders like Sharon Graham of Unite pushed for bolder action on workers' rights, including repealing anti-strike laws and introducing sector-wide bargaining. While Starmer has embraced some of these ideas, such as banning zero-hours contracts and introducing a "New Deal for Working People," he must balance them against business fears of rising costs. Externally, the global economic headwinds—high inflation, supply chain disruptions, and geopolitical tensions—add complexity. Labour's growth targets, aiming for 2.5% annual GDP expansion, are ambitious in a world where many economies are stagnating.

Critics argue that Labour's reforms, while welcome, lack sufficient detail on funding. How will the party finance its infrastructure ambitions without increasing borrowing or taxes? Reeves has pointed to efficiency savings and closing tax loopholes, but skeptics remain. Moreover, the planning reforms could face backlash from environmental groups and local communities wary of overdevelopment. Starmer countered these concerns by framing the agenda as a "mission for growth," insisting that inaction is not an option. "We can't afford another decade of decline," he told the breakfast crowd, invoking the spirit of post-war reconstruction.

The bacon-and-eggs event was more than a photo op; it was a statement of intent. By hosting it at the conference, Labour signaled that business is no longer an afterthought but a core partner in its vision for Britain. Attendees left with a sense of renewed dialogue, with follow-up meetings already in the diary. For Starmer and Reeves, the real test will come if they form the next government. Can they deliver on these promises without alienating their left-wing base or spooking investors? The UK's economic future may well depend on it.

Expanding on the broader implications, Labour's strategy reflects a global trend where center-left parties are repositioning themselves as champions of capitalism with a social conscience. In the US, President Biden's administration has pursued similar industrial policies, blending green investments with worker protections. In Europe, Germany's Social Democrats have emphasized economic stability amid energy crises. For the UK, post-Brexit, attracting foreign direct investment is paramount. Labour's pledges to rejoin EU programs like Horizon for scientific research could sweeten the deal for multinationals.

Personal anecdotes from the event added color to the proceedings. One executive recounted Starmer's approachable demeanor, joking about his love of football as a way to break the ice. Reeves, meanwhile, shared stories from her time in banking, underscoring her understanding of corporate pressures. These human touches are part of a deliberate rebranding effort, moving Labour from protest party to government-in-waiting.

In conclusion, this breakfast marks a turning point. With bacon and eggs as the unlikely symbols, Labour is serving up a menu of reforms aimed at whetting the appetite of big business. Whether it leads to a feast of investment or leaves a bitter aftertaste remains to be seen, but the offensive is well and truly underway. As the conference wraps up, the message is clear: Labour is open for business, and it's hungry for growth. (Word count: 1,128)

Read the Full This is Money Article at:
[ https://www.thisismoney.co.uk/money/markets/article-14943167/Reforms-bacon-egg-offensive-woo-business.html ]