With 14 years since the last Labour government, it’s no surprise that the UK’s latest general election has brought in a new era of economic uncertainty.
With the results now in, investors are speculating on how this new government will affect and shape the UK’s financial landscape.
Here, we asked the experts what they think this new government could mean for investors. Here’s what they had to say:
Our Experts
- Anna Heyes, Founder of Tech Climbers and CEO at Active Profile
- Merlin Piscitelli, Chief Revenue Officer, EMEA at Datasite
- Lukman Otunuga, Senior Market Analyst at Forex Trading Broker
- Oliver Shaw, CEO of Orgvue
- Kevin Gaskell, ex-CEO at Porsche and BMW
- Andy Ayim, Founder at Open Angel
For any questions, comments or features, please contact us directly.
Anna Heyes, Founder of Tech Climbers and CEO at Active Profile
“Labour’s manifesto outlined clearly how tech can improve every corner of our lives – from the economy to health and social care, using it as a vehicle to solve societal challenges.
“However, if the UK is to compete globally, appetite for risk needs to be driven by the Government into regional funding for tech. Our most recent Tech Climbers report found that 74% of businesses are looking to raise seed or Series A capital and that’s just in the Yorkshire region. We have the talent and the hunger for growth outside of London, which needs to be supported by the Government.
“The tech sector has the potential to transform the UK’s fortunes. It’s already contributing over £150bn to our economy every year and creates high value jobs, employing over 1.7 million people. But, there is a skills gap around emerging tech like AI – I’d like to see Labour’s growth and skills levy address this, to help break down the barriers to opportunity.
“Ultimately, the new Government needs to focus less on policy and more on delivery. Let’s take our talented regional tech eco systems and profile them on an international stage – but we can’t do that without funding businesses to grow.”
Merlin Piscitelli, Chief Revenue Officer, EMEA at Datasite
“A new government will usher in a period of change for business leaders, dealmakers, and the global economy. Given that, preparation is key. For example, taxation and regulatory policy changes, and potential monetary policy changes will impact the way dealmakers move. Additionally, post-election investor sentiment will play a role in whether businesses pursue acquisitions. If there a sense of a favourable economic environment, businesses will be more encouraged to pursue acquisitions.
“In terms of sectors to watch, Labour’s focus on clean energy and renewables, including plans to have a full decarbonised power grid by 2030, could create heightened activity in that arena.
“With the result now final, dealmakers have more certainty and confidence preparing for the future. Yet there may be a pause on cross-border transactions until the US election is held in November.”
Lukman Otunuga, Senior Market Analyst at Forex Trading Broker
“While the Green party’s policies could have shaken up the UK energy industry, Labour has comfortably won the general election. The political party wants to “make Britain a clean energy superpower” and has proposed various policies that could rock the oil and gas industry.
“One just needs to look at their ambitious target to achieve clean power by 2030 and increase spending on green energy projects over the first term.
“Given how these policies promote a transition to clean energy and favour renewable energy industries, their impacts may be reflected on commodity stocks including oil, natural gas, and renewables.”
For any questions, comments or features, please contact us directly.
Oliver Shaw, CEO of Orgvue
“The UK is home to the third-largest tech sector globally and had the 3rd highest level of investment in Artificial Intelligence. It is imperative that an incoming government prioritises policies that attract and retain top talent. Ensuring tech executives and skilled workers find the UK an attractive place to work is important for sustaining the sector’s growth and competitiveness whilst creating the jobs for the future.”
“It is essential to enhance investment incentives like the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS), which have been pivotal in nurturing the UK’s vibrant startup ecosystem. These schemes encourage early-stage investment by offering significant tax reliefs, helping innovative companies to secure the necessary funding to grow.”
“Furthermore, stability in tax regimes and investment rules is important. Any abrupt changes could disrupt funding flows and hamper growth, particularly as many tech companies rely on private equity investments, which are currently under strain due to high lending costs. A stable and predictable investment environment will help mitigate risks and foster confidence among investors.”
“Finally tech leaders can help. The incoming government must address inefficiencies within the civil service and public sector. Improving operational efficiencies with technology and AI can unlock significant resources. The British tech sector help thousands of enterprises globally by streamlining processes and cutting through bureaucratic red tape, they would relish the opportunity to help the government can create a more agile and responsive technology led public sector”
Kevin Gaskell, ex CEO at Porsche and BMW
“Investors typically seek long-term market stability and economic predictability. Establishing this encouraging environment must be the number one objective for the government and investors will reward consistency and predictability with the application of their funds.
“Wealth creation, stated as a target by the new government, can only be achieved with private capital feeding new business sectors and improving traditional industries. The government must recognise that investor funds are the lifeblood of any new business initiative. Investors are keen to invest, new technologies are providing exciting opportunities for investment.
“If the government are wishing to encourage private investment, they must ensure that the risk premium of investing in businesses is recognised within the tax regime. The speculation about increases in capital gains tax and other tax allowances and rates is not helpful in encouraging early stage investors.”
Andy Ayim, Founder at Open Angel
“Labour will be aware that the UK economy needs to kickstart economic growth through stability, investment, and reform. Two areas of investment from the government that could make a huge difference for startups in the UK are better policy for exporting goods across Europe and better access to finance for small businesses.
“For most small businesses it will be business as usual for now as many deal with the margin pressures of increased cost of goods, high interest rates and cost of living impacting consumer demand.”
For any questions, comments or features, please contact us directly.
