Ed Miliband’s ‘One Nation Economy’ speech delivered at Senate House last Friday (17 January 2014) showed the ground on which Labour will fight the next General Election. It also showed why it is important that businesses engage with the Party.
It was clear from the speech that policy is in its developmental stage and there were plenty of comments to show that nothing that was said was 100% set in stone. For instance:
“If the banks can’t demonstrate real culture change by the time of the next election they will see their high street and casino arms broken up”.
Any new government does not automatically want to pick fights and would rather have worked out solutions in advance. If it does not have these then the early years can be lost and momentum slowed. Labour is trying to balance the need to be seen as having ideas and put forward a distinctive programme whilst not reforming and introducing unnecessary risk just for the sake of it.
I was fortunate enough to chair a business breakfast with Iain Wright MP last week and he stressed the party’s wish to work with business in the development of policy.
Whilst Miliband wants to tackle vested interests, the Party also recognises that it cannot ride rough shod over business and introduce lots of unnecessary risk. But it is also up to the businesses themselves to help the Party (and the other parties as well) in their policy making as this will minimise potential risk and potential costs.
The banks, for instance, need to take action now. Miliband has described what he wants to see and the timescales as well. Other sectors too should take note of this.
Whilst the emphasis has been on energy and banks so far, Miliband also said in his speech:
“Broken markets, from gas and electricity to transport, which are not being reformed.” (emphasis added)
Miliband has subsequently gone further in suggesting that consumer groups will be involved in decision-making (see BBC report). In essence, any organisation in a regulated sector will now also have to consider the position and agendas of consumer groups if they are not already doing so.
Policy making is an ongoing process but comes most sharply into focus in the run-up to a General Election. Whilst there are formal processes and structures in place these should not be used as an excuse for failing to engage.
Miliband’s speech, and those of Shadow Ministers, shows the country what the Party wants to do. These speeches are also being used to communicate with businesses and other organisations.
These speeches should be mined for information. Taking this speech alone, Miliband talked about the Party’s wish to establish a Green Investment Bank, British Investment Bank and challenger banks. Organisations need to consider this agenda and look to where they can add value, challenge, come up with solutions and take action in advance.
There may also be similar paths that Labour’s policy-making go down. In other words, good ideas which chime with the thrust of policy direction will be listened to.
Also, politicians across the board want to hear ways in which they can connect with the issues of the country. They need to overcome the perception of isolation from ‘ordinary voters’.
The energy sector is already alive to the prospect of reform but others, such as transport, also need to be awake. Now is the time to start engaging.