Business seeks clear victor in UK general election

Business bosses say they want a clear victor to emerge from the UK general election after years of political upheaval that wreaked havoc with policymaking and financial markets. 

Chief executives called for the next government to overhaul the planning system and upgrade infrastructure to kick-start the economy after Prime Minister Rishi Sunak called a snap election for July 4.

Aviva chief executive Amanda Blanc said the FTSE 100 insurer wanted a “decisive outcome” from the poll to support investor and business confidence.

While business leaders said that policy differences between the two main parties were narrower than in recent elections, the call for stability is particularly likely to be welcomed by Labour.

Pollsters say Labour’s 20 percentage point lead in surveys over Sunak’s Conservatives suggests that at present only the main opposition party could win a large majority.

But Labour’s lead could shrink, and a small House of Commons majority could make it difficult for party leader Sir Keir Starmer to resist demands from his leftwing MPs.

Sunak argued this month that the election could still produce a hung parliament and experts caution that Labour needs a bigger swing than Tony Blair achieved in his 1997 landslide to secure a majority of one.

Other business bosses also expressed a preference for the winning party on July 4 to obtain a clear mandate.

Octopus Energy chief executive Greg Jackson said the energy sector needed bold, rapid decisions to make improvements such as speeding up access to the electricity grid, as well as a period of consistent policymaking.

“An election and a government with a mandate is more likely to give us that,” he added.

Stephen Bird, outgoing chief executive of FTSE 250 asset manager Abrdn, said: “Investors want certainty, one way or another. Prevarication is never good for markets.”

Since the Tories won the 2019 general election, the UK has had three prime ministers and five chancellors.

Sunak has sought to repair relations with company bosses after Liz Truss’s disastrous 2022 “mini” Budget and the abrasive approach to business taken by Boris Johnson.

“What is urgently needed in government is stability, competence, continuity and pragmatism over ideology,” said Sir Mike Rake, former chair of BT Group, KPMG and easyJet, in language that echoes Starmer’s own rhetoric.

Several company bosses signalled they were not concerned by the prospect of a Labour government, despite the party’s plans to boost workers’ rights.

“The economic agendas of both parties are closer to each other than in previous elections,” said Hendrik du Toit, chief executive of asset manager Ninety One.

“What interests us as investors is whether Keir Starmer in particular will deliver on his electoral promises . . . Stability and certainty mean more to markets than slight changes in policy agendas.”

Starmer has sought to detoxify Labour’s relationship with commerce since replacing hard-left leader Jeremy Corbyn, who favoured nationalising swaths of British industry.

Some business leaders, including Rake, called for the next government to align closely with the EU, arguing that Brexit had damaged the UK’s economy.

Both main parties have avoided reopening the divisive Brexit debate publicly but Labour is set to pursue closer trade and defence ties with the EU.

Some business chiefs remain worried by the possibility of a Labour government.

One FTSE 100 chief executive said shortly before the election was called that he was concerned about deputy leader Angela Rayner, who is to the left of Starmer. 

The executive added: “We know that she has very different views from [shadow chancellor] Rachel Reeves.” Reeves has worked to build relations with business leaders. 

Several bosses said the next government would need to improve the UK’s planning rules and infrastructure to boost growth. 

“There’s no growth if industries can’t get on and build quicker, so it’s vital we see bold and confident decision-making to speed up planning and get spades in the ground, creating jobs, boosting supply chains and delivering the modern infrastructure this country needs,” said Keith Anderson, chief executive of ScottishPower. 

Mark Allan, chief executive of FTSE 100 property group Landsec, said his company would be able to invest “twice as much as we currently do” if the planning system were made more efficient.