Financial Services & Navigating Change with Labour’s New Government
With a new Labour government having been in power for a month, curiosity and hope for the positive changes they will bring are driving conversation – including at our most recent event which explored what’s next for the financial services industry following the General Election.
As a country and industry poised for change, it was fascinating to host the conversation which explored what we’ve seen so far, what we might be able to expect and the role the industry has to play in supporting the new Government, including educating the more than 300 new MPs that are now taking seats in the Houses of Parliament. This influx of new MPs brings opportunities to build alliances and advocate for innovative policies that will shape the future of financial services and our economy.
The Labour Government faces pressure to deliver quick wins, contrasting with their predecessors’ more gradual approach – but the conversation acknowledged hopes for a Government that can plan and create opportunities for change long after its term has ended. Even though it has only just begun!
With a Budget coming later in the year, there is much we don’t know clearly yet and 2025 will reveal more about Labour’s longer-term intentions and ambition for the economy, the financial services sector and the quality of lives of people across the country.
There are early indications of future regulation and increased cooperation between The Treasury and key departments influencing our industry – His Majesty’s Revenue & Customs and the Department for Work and Pensions. Closer working relationships between those in Government, their advisors and external Think Tanks will shape what is to come.
Growth, and the strategy and tactics needed to drive it, is already clearly on the agenda and were of keen interest amongst those at the event – from the role of pension investments, decisions around infrastructure projects, supporting business innovation, and enabling strong growth throughout all of the UK regions. There are many levers the new Government is expected to pull to help drive growth, but the full picture is not yet clear as it focuses on balancing the books and having an impactful start.
And when it comes to impact, the approach is already being established for having a national approach to Financial Inclusion. An approach is needed that will ensure those who are excluded from the financial system, as well as those who our industry does not adequately provide for, experience the full force of the innovation and progress that financial services can bring.
With just a month in power there is so much still to come from the new Government. The importance of strategic engagement, adaptability, and proactive collaboration rang true and as the event concluded, there was a sense of shared purpose and a renewed commitment to navigating the future of financial services – bringing the industry into the next phase of its evolution.
