As party conference season draws to a close in the UK and delegates board (not high speed) trains back home, investors into the UK would be wise to pay attention to some of the announcements. These were the last conferences before a general election, due by early 2025.
The week before, Prime Minister Rishi Sunak tried to create some distance from the last 13 years of Conservative rule, with a speech marked by the widely-reported decision to cancel HS2 – the high speed rail link from Birmingham to Manchester. In contrast, Keir Starmer's Labour Party set out the agenda it hopes to pursue in office.
Given their current lead in opinion polls, Keir Starmer may become the next Prime Minister. As a result, there are a number of points that investors should be aware of, particularly given his stated desire to "fight the next election on economic growth".
Life sciences
Labour has continued its emphasis on life sciences. At least four shadow ministers referenced life sciences companies as the future of British economic growth. Both Keir Starmer and Shadow Chancellor Rachel Reeves promised long-term stability and boosts for the sector.
The new shadow Secretary of State for Science, Innovation and Technology, Peter Kyle, placed life sciences at the centre of his speech as well. One announcement was that Labour would create ten-year R&D budgets for organisations such as UKRI, rather than the current three year budgets. This follows recent attempts by the Government to improve the UK's R&D tax credits. Another key announcement was that Labour would try and boost the number of university spinouts, again building on recent efforts by the Government to promote the 'Golden Triangle'.
Shadow Health Secretary Wes Streeting also highlighted life sciences and tech entrepreneurs as being able to solve many issues facing the NHS. This follows his previous calls to encourage the use of more clinical trials within the NHS.
Green infrastructure
One of Labour's other flagship policy announcements was the launch of "Great British Energy". This new publicly-owned energy company would be based in Scotland, presumably in part to regain ground from the Scottish National Party. As previously discussed, this idea has been promoted by Labour's Ed Miliband for some time. The focus on clean energy represents a potential difference from some of the Conservative Party's recent rhetoric.
Green sovereign wealth fund
Rachel Reeves also announced the creation of a British "National Wealth Fund". This follows various previous calls for the UK to create such a fund, perhaps harnessing the power of pension funds. The stated aim is to leverage £3 of private investment for every £1 of government investment, in order to fund low-carbon energy projects. Specific details are still required, including questions over the exact quantum of the fund.
As always, conference speeches tend to be high level, and the devil will be in the detail of Labour's manifesto next election. However, many life sciences and green energy investors may be quietly optimistic if Labour do win the next general election.
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