Bright Blue: Labour need to be bolder to boost growth

Bright Blue: Labour need to be bolder to boost growth

Commenting on the 2024 King’s Speech, Ryan Shorthouse, Executive Chair of Bright Blue, said:  

“This country voted for change, and Labour must now deliver it. To improve private finances and public services, which have at best stagnated in recent years, we desperately need to increase economic growth. That should and seems to be the overriding mission of Starmer’s Government. 

“The Prime Minister is right that there are no quick fixes. But to achieve much higher levels of growth, the Labour Government has to be radical, turbocharging the building of housing and infrastructure, expanding economic activity, and using technological advancements in particular to boost private and public sector productivity.

“There are signs already that Labour is being bold on the building of new homes. But this should only be the start. There are lots of new bills announced today, but little detail. Whilst their political capital is still high, this new Labour Government should seize the opportunity to be brave.”

Legislative announcements made in the King’s Speech 2024 adopted the following Bright Blue policies:

• Ending no-fault evictions.
• Reforming compulsory purchase compensation rules.
• Using development to fund nature recovery where currently both are stalled.
• Banning the sale of new leasehold flats.
• Ending the VAT exemption on private school fees.
• Increasing local planning authorities’ capacity.
• Making flexible working the default from day-one for all workers.
• Reforming the House of Lords to move towards a second chamber that is more representative of the UK’s regions and nations.

Below, Bright Blue has responded to the announcement of legislation that is particularly relevant to our current work. It therefore is not an exhaustive response to the 2024 King’s Speech.

HOUSING

• Planning and Infrastructure Bill
• Renters’ Rights Bill
• Draft Leasehold and Commonhold Reform Bill

Bartek Staniszewski, Senior Research Fellow at Bright Blue, commented:

“It is good of Labour to bring back a rebranded Renters Reform Bill after it was dissolved with the calling of the general election. It took the Conservatives five years to get around ending no-fault evictions – hopefully the new Government can get it done sooner.

“While lacking in specifics, planning reform is exactly what the Labour Government should be focusing on – the planning system is the single biggest barrier to getting Britain building.

“It is also laudable of Labour to intend to build on the Conservatives’ 2024 Leasehold Act. They should use this opportunity to take leasehold reform further to truly put an end to the UK’s unfair leasehold system.”

IMMIGRATION

• Border Security, Asylum and Immigration Bill

Sarah Kuszynski, Researcher at Bright Blue, commented:

“The creation of the new Border Security Command should be welcomed in the effort to counter the harms of people smuggling. However, to effectively reduce small boat crossings, the Government must combine new law enforcement measures with closer cooperation with our European partners and expanding returns agreements. They also need concrete measures to address both upstream and offshore asylum claims.”

EDUCATION

• Removal of the exemption from Value Added Tax for private school fees
• Skills England Bill

Ryan Shorthouse, Executive Chair of Bright Blue, commented:

“There is no justification for maintaining VAT exemption on private school fees, other than if the general taxpayer or average state school is better off because of it. The best available evidence suggests this is not the case. Rather, it suggests adding VAT would raise revenue which can be directed towards improving state schools.

“Broadening the Apprenticeship Levy so firms can spend it on a broader range of training is a mistake. The current Levy is already often being used on more expensive training for older staff.”

ENERGY AND ENVIRONMENT

• Great British Energy Bill

Will Prescott, Senior Researcher at Bright Blue, commented:

“The new Labour Government’s firm commitment to accelerate investment in renewable energy is welcome, but given the lack of detail so far and the UK’s mixed track record in effectively managing government-owned enterprises, it remains unclear whether Great British Energy will live up to the high expectations placed on it.”

ECONOMY & EMPLOYMENT

• Establishment of an Industrial Strategy Council
• Budget Responsibility Bill
• Pension Schemes Bill
• Employment Rights Bill

Bartek Staniszewski, Senior Research Fellow at Bright Blue, commented:

“Since 2021, the UK has lacked a proper industrial strategy, but a renewed focus on British manufacturing could play a key role in tackling the UK’s regional inequality as well as make us less dependent on imports from uncooperative foreign states, such as China.

“The Government is correct to maintain a commitment to fiscal responsibility by subjecting all significant tax and spending changes to an independent assessment by the Office for Budget Responsibility. Starmer is working hard to jettison Labour’s former reputation as the party of reckless expenditure.

“Currently, UK pensioners lose on tens of thousands of pounds over a lifetime due to the poor returns delivered by UK pension funds as compared to their international peers, so it is welcome that the Government seeks to strengthen pension investments.

“The Government is also taking some good steps towards making the choice to have a family easier by making flexible working the default from day-one for all workers and strengthening employment protections for new mothers.”

TECHNOLOGY

• Cyber Security and Resilience Bill
• Digital Information and Smart Data Bill

Sarah Kuszynski, Researcher at Bright Blue, commented:

“Granting regulators greater power to compel companies to implement cybersecurity measures and mandate the reporting of cyber incidents is a timely and crucial step in strengthening the UK’s digital defences. Indeed, it goes some way to bolstering the protection of critical public services amid increasing numbers of cyberattacks from malicious actors.”

ENDS

Notes to editors:

To arrange an interview with a Bright Blue spokesperson or for further media enquiries, please contact Emily Taylor at emily@brightblue.org.uk or on 078414 19316.

• Bright Blue is the independent think tank and pressure group seeking to defend and improve liberal society.
• Bright Blue’s Board includes Ryan Shorthouse (Executive Chair), Diane Banks, Philip Clarke, Alexandra Jezeph and Richard Mabey.
• Our advisory council can be found here. Members of our advisory council and our parliamentary supporters do not necessarily endorse all our policy recommendations, including those included in this press release.