On Friday, 5th of July 2024, Keir Starmer was appointed as Britain’s New Prime Minister after a landslide victory for the Labour Party at the General Election, ending the 14 years of Conservative Party governance in the Country
End of Conservative Governance
Businesses expect new government will take responsibility and manage financial resources judiciously. The most urgent need of the country is to bring significant business investment opportunities and give release to businesses and the general public.
The Legacy of Austerity
Austerity in the UK started following the 2008 financial crisis; a Recent IFS analysis has documented that The United Kingdom’s austerity measures began as a result of deficit reduction, and cuts had been introduced by all government departments since 2010. The measures comprise spending welfare cuts, axing school building projects, reduced local authority support and a hike in VAT. This measure reduces public spending, lower economic growth, and increased unemployment in certain sectors. Due to budget constraints, public services such as healthcare, education, and social care have faced significant challenges
Promises of the New Leadership
Keir Starmer and his Chancellor Rachel Reeves’s promises include growth and generating the resources needed to deal with challenges. Now, businesses are hoping to hear detailed plans and policies from the prime ministers regarding supporting UK businesses.
Vision for National Renewal
In his victory speech, Sir Keir Starmer said: –
“Our task is nothing less than renewing the ideas that hold this country together. National renewal. Whoever you are, wherever you started in life, if you work hard, if you play by the rules, this country should give you a fair chance to get on. It should always respect your contribution, and we have to restore that. The fight for trust is the battle that defines our age.”
Sir Keir Starmer
Business Adaptation and Opportunities
This puts the onus on businesses to keep up with these developments and adjust accordingly to make sense of the new economic reality. Companies like AKKS Accounting have again played a valuable role at cost-excellent professionals to navigate this transition and seize opportunities. Businesses will need to be aware of and adjust around these shifts to capitalize on the coming economic style. As with anything, well-positioned partnerships with accounting firms or other advisory services specialising in new business areas can help organizations thrive in these exciting times ahead.