How the new Labour government could impact your business and how ActionCOACH can help you thrive
The recent landslide victory of Keir Starmer’s Labour Party brings a significant shift in UK economic policy — and for business owners, that means both potential challenges and major opportunities. At ActionCOACH, our business coaches believe that the smartest companies will get ahead by planning strategically, staying agile, and taking proactive steps now.
The short term impacts of labour’s victory
So far, the impacts of the Labour Party’s victory haven’t been shocking. Most impacts outside unexpected developments will likely be felt in the long term – especially once new policies come into play.
However, there are a few short-term impacts businesses should at least keep an eye on:
Economic Stability
In the short term, businesses can expect a period of relative stability. Financial markets have shown little immediate reaction to Labour's win, suggesting a sense of continuity. This stability could provide a much-needed boost to business confidence, potentially encouraging investment and growth.
Consistent Taxation
Labour has pledged to maintain the current corporation tax rate of 25% for the entire parliamentary term. This commitment to tax stability should allow businesses to plan their finances with greater certainty in the near future.
Find out how you can stablise your finances in this article here.
Legislation Fighting Back Against Late Payments
One of Labour's immediate priorities is to tackle the issue of late payments, which currently locks up an estimated £20 billion in unpaid invoices for UK small businesses. New laws forcing larger firms to disclose their payment practices could improve cash flow for many small and medium-sized enterprises (SMEs).
Labour’s long-term business impacts
So, while many experts believe that the market will remain relatively calm for at least these first few weeks to months, what changes could businesses see?
Business Rates Reform
Labour has promised a significant overhaul of the business rates system. While the details are yet to be finalised, this could reduce costs for small businesses and high-street retailers, potentially offset by increased contributions from large multinationals and tech companies.
Infrastructure and Connectivity
A major campaign promise, the new government plans to implement a ten-year infrastructure strategy, focusing on modernising transport, digital, and housing infrastructure.
This long-term investment could create new opportunities for businesses, particularly those in the construction and technology sectors.
Employment Law Changes
One area that may impact business owners in particular is potential employment law updates.
Labour intends to reform employment law, including granting more rights to employees from their first day of work. While this may benefit workers, it could also increase costs and administrative burdens for employers, especially small businesses.
Green Energy and Sustainability
A hallmark of Labour's policy positioning, green energy will certainly take a larger role in the years ahead. The commitment to making Britain a "clean energy superpower" could create new opportunities for businesses in the renewable energy sector. However, the associated costs of transitioning to greener practices may pose challenges for some industries.
Skills and Immigration
Immigration continues to be a sharp issue across the country. Labour looks to implement a far different stance on immigration than the Conservatives, and it’s important for business owners to be aware of what the changes may entail.
To address skills shortages, Labour plans to reform the points-based immigration system and focus on local training programs. This could help businesses access the talent they need but may also require investment in training and development.
Why now is the perfect time to work with ActionCOACH
Change brings uncertainty, and that’s where ActionCOACH business coaches come in. Here’s how we can help you turn Labour’s policy shifts into a competitive advantage:
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Strategic planning & forecasting
Our coaches help you model different future scenarios based on Labour’s reform roadmap. We’ll work together to assess how changes to business rates, tax, and infrastructure might affect your bottom line, and create a robust 3- to 5-year plan that keeps you ahead. -
Cash flow & financial resilience
With potential shifts around invoice payments and taxation, now is the time to shore up your cash flow. A coach can help you review your systems, optimise your finance processes, and build cash buffers so your business stays liquid and resilient. -
Operational efficiency
Employment law reforms could introduce new compliance demands. We can help you redesign your HR and administrative processes to absorb these changes without breaking the bank, helping you protect profit margins and stay compliant. -
Growth through infrastructure opportunities
Labour’s infrastructure strategy could open up new market opportunities. Whether you start to position your business for construction projects, tech investments, or green energy partnerships, your ActionCOACH can help you define and execute a growth playbook to capitalise on those trends. -
Talent strategy & training
As immigration and skills policy shift, attracting and retaining talent may become more complex. We’ll help you invest in upskilling, create attractive employee value propositions, and plan a talent pipeline that aligns with your long-term goals. -
Sustainability & green transition
If your business is or wants to become more eco-friendly, our coaches can help you make the transition. We can guide you through green-business modelling, cost-benefit analysis of sustainable practices, and how to leverage green opportunities in your sector. -
Mindset & leadership support
Political and policy uncertainty can be stressful for business leaders. ActionCOACH provides not just strategic support, but leadership coaching, helping business owners stay focused, flexible, and confident in their decision-making.
Final thoughts: navigate uncertainty with confidence
The new Labour government signals big changes ahead, but with change comes opportunity. Whether it’s reform to business rates, stronger environmental policies, or new employment rights, forward-thinking business owners can use these shifts to their advantage.
By partnering with ActionCOACH, you equip yourself with the insight, strategy, and execution power to not just weather the changes, but to position your business for long-term growth. Our experienced coaches are ready to help you stay focused, plan wisely, and scale confidently, no matter how the political and economic landscape evolves.
Ready to future-proof your business?
Reach out to an ActionCOACH business coach today to start building your tailored growth plan.