Following the recent Labour landslide and last Wednesday’s King’s speech, we have digested and dissected Labour’s manifesto to understand what the finance sector and SME market might face over Starmer’s term.
Mark Johnson, Director of Johnson Reed Business Finance, was asked for a “positive” take. With his usual wit, he replied, “Well, it can’t get much worse and uncertain for SMEs, can it?”
Mark elaborated, noting that while Labour’s manifesto is somewhat vague and hard to work out exactly what labour will do, it’s clear that this will be a more interventionist government. “Labour and Starmer seem keen to get involved, especially with their green strategy and GB Energy, hoping to create small and medium sized renewable projects, invest in renewables and decarbonize the UK’s electricity system by 2030. But expect changes in other areas also, such as the wealth fund, employment regulation, and industrial strategy. I’d expect some ambitious and challenging deadlines to be set here.”
He continued, “SMEs have endured and thrived through a lifetimes worth of uncertainty over the past few years. They’re arguably more resilient, flexible, and stronger than ever. With their ability to work under pressure, they have every reason to be optimistic about this period of change.”
When focusing on the leasing industry, Mark considered where the leasing and asset finance industry might reasonably hope to be by the end of this parliamentary term. Looking back over the last five years, he pointed out, “The industry changed massively under the pressure of Covid. Now, can we maintain that momentum?
“There’s a new generation of business owners coming through. It’s going to be really challenging and that’s what makes our industry so interesting. We are looking ahead at the pledges about Net Zero being brought forward five years, it’s an optimistic deadline, but we as an industry are good at deadlines. We’re good at getting things done under time pressure. We’re a powerful industry and we can pull together when we are needed most.”
Marks final word was to remind our clients and valued introducers that “JR are still leading the SME lending sector with a common sense, can do approach for the market. There’s plenty to look forward to and with the added resilience of many businesses, it can only be a promising and optimistic change.”
