Reflections from Labour Party conference

Returning from Liverpool, here are a few reflections on Labour party conference 2025.

Labour Party messaging around the various meetings, fringes and drinks events was that the government is laser focused on the twin goals of delivery of economic growth and taking the fight to Reform UK. There was plenty of energy from the front bench to back this up. Senior cabinet members were very visible at events throughout the week, pressing the flesh and on message, making the case that they are moving fast to try to boost growth and ‘renew’ Britain.

Attendance at conference was down from last year but morale was better. There were fewer delegates, MPs and corporates fighting for attention. The usual driving wind and rain that tends to accompany Labour conference in Liverpool at this time of year was absent, making it a more cheerful experience than usual! Events were well attended, but not uncomfortably so. Businesses, many put off by an especially poor experience last year and still balking at the high cost of exhibiting or hosting events, were better looked after. Labour MPs seemed more available for conversations and open to hearing policy ideas and grievances.

The conference came against the backdrop of Labour languishing in the polls, the recent cabinet reshuffle and threats of a leadership challenge. The Prime Minister (PM) used the threat of Reform UK as the tool to try and unite and galvanise the party around his patriotic vision of a fair-minded and decent Britain. He used his Leader’s speech to urge a rejection of the alternative ‘politics of grievance’, speaking passionately and delivering a more captivating performance than usual. For the duration of the conference, at least, forcing a focus on Reform UK and contrasting it with his vision of Britain under Labour seems to have served the PM well with the Labour PLP and members alike.

There were only two major new policy announcements. The UK government will scrap its commitment to get 50% of England's young people into university and replace it with a new target that two-thirds of young people will either go to university or achieve new “gold standard apprenticeships.” It will also create a ‘‘digital NHS trust’’ so that patients can see their doctors more easily via technological means. Both announcements were welcomed, though with a bit of a shrug: they were seen by those I spoke to as necessary policies for today’s economy, but not significant enough on their own to address Britain’s anaemic growth problems.

So what of the rest of the policy agenda, and what can businesses expect? On this, there was less discussion on the main stage, but there were some clues within the events outside the main hall:

Business policy: Peter Kyle MP, the Business Secretary, was keen to talk up the recent trade deals with the US, EU and India, particularly the inward investment in the UK from US companies. Further work is being done to bring down trade tariffs with the US in critical sectors to the UK. However, messaging to business remains mixed. There seems to be little appetite to water down the Employment Rights Bill, which will disappoint those hoping that the recent reshuffle provided an opportunity for a rethink.

Taxation: With a budget looming and a Chancellor struggling to balance the books, corporates are once again nervous. Headlines have focused on the Chancellor’s refusal to rule out a rise in personal income tax, VAT or national insurance. But business is bracing itself for a further raid. Gambling and banking sectors are candidates for a windfall tax, but other sectors are also on guard.

Tech: Tech policy events were mainly dominated by discussion on the regulation of AI, online safety and crypto-related assets. An AI Bill is still expected shortly, and there were discussions around gaps in the Online Safety Act that need to be plugged. With pressure bearing down on the UK government from the US to not push tech regulation much farther, the big questions being asked were ‘‘What appetite has the UK government got to do more on tech regulation, and how far will it go in this Parliament?’’

Immigration: The hot topic of the day is an uncomfortable one for Labour and business. The introduction of digital IDs, right-to-work checks and one-in-one out rules are all designed to show action on illegal immigration. The government sees an opportunity to boost growth by trying to attract the world’s brightest and best in the wake of the hikes to the US H-1B visa fee, but will it be bold enough to put policies in place to do so? Any action to attract immigrants these days, even highly skilled ones, is fraught with political danger. It sounded to me like while the government would like to attract more highly-skilled workers, there are no meaningful plans in the works.

Housing: The new Housing Secretary, Steve Reed MP, donning a red cap throughout conference emblazoned with the slogan ‘‘Build baby, build’’, left nobody in doubt as to where his priorities lie. Building 1.5m homes over the course of the Parliament is a lofty challenge, but one he seemed willing to own. Full marks to him for policy communication and engagement.

Energy: Labour’s message at conference was strongly in favour of renewable energy and Ed Miliband MP took the fight to Reform UK directly by saying that he will “ban fracking for good”. There will be new legislation to permanently ban the extraction method and a series of campaigns in constituencies that sit above shale gas areas.

Europe: It was clear that Nick Thomas-Symonds MP and the previous Foreign Secretary, David Lammy MP, have successfully reset UK-EU relations, which are now closer than at any time since Brexit. The new Foreign Secretary, Yvette Cooper MP, is keen to invest further in this partnership, and we can expect more sectoral co-operation deals soon, starting with youth mobility. The elephant in the room remains whether this government will, in its search for elusive economic growth, at some point feel sufficiently emboldened (or desperate) to move towards rejoining the EU single market. The feeling and rhetoric right now is that this remains far off, despite polling showing that Britons are now more comfortable with moving in this direction.

Let me know if you attended the conference and have thoughts on any of the above!

And of course let me know if you have any questions that I or Inline can help you with.