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Understanding the political landscape

August, 2023

A key part of PR, marketing and public affairs agency Maxim’s work involves advising clients on the political landscape, and how best to engage with local stakeholders. Managing Director Andrew Metcalf gives an insight into what recent political changes might mean for local businesses as we edge closer to the General Election.

The implications of the May 2023 council election results are only now being fully comprehended. Combine the shift in power in many Town Halls with the national economic conditions; the continuing cost of living crisis; and council budgets being squeezed, and the results are having major ramifications for the business community in the South East.

Government department budgets are under serious scrutiny, with many delaying spending. The biggest local project to be hit by a delay is the £9bn Lower Thames Crossing which now won’t start until 2027 at the earliest – and it’s not even through the national planning process yet.

Seismic shift

Across Kent, Surrey and Sussex there’s been what can best be described as a seismic political shift. In the wake of the electoral upheaval there is the prospect of greater business uncertainty, compounded by the financial pressures under which most local authorities now find themselves.

The May ballot boxes turned the likes of Dover, Thanet and Medway from blue to red. Horsham and Surrey Heath (Michael Gove’s constituency) switched to the Lib Dems, with strong performances by the Greens. Conservative bastions like Wealden District Council now have a Labour councillor for the first time in half a century, while in Lewes all 21 Conservative councillors lost their seats, with the Greens emerging as the largest party.

Many councils moved from being Conservative to no overall control, meaning either a rainbow coalition of the parties will need to be forged and maintained, or a minority administration took charge. As a result, it’s not surprising that many of the new incumbents are risk-averse, wary of losing the support of their recently won voters. The result for business is uncertainty, and this is evident no more so than in the planning arena, with many new councillors making decisions.

Action

Some places moved quickly, for example in Medway the Cabinet was announced within days, sending out strong signals about the regeneration and economic development agenda, which was well received by business. However, other councils and their new leaders with small majorities have taken longer to put their plans and priorities into action. This has been made even harder as some councillors who were elected on a party ticket have since jumped ship and declared themselves independent, making the situation even more finely balanced.

Many companies across the South East have to call upon local politicians for support for their respective industries on issues such as transport, skills and training, and planning, which means keeping a close eye on which direction each local authority takes. One thing is certain, spending on business support isn’t high on the list of council priorities, when compared to the social pressures facing communities.

The current economic conditions make jobs-led investments politically more appealing, but – despite the pressure of high government housing targets – they are unlikely to lead to a more positive approach to planning for residential development. Instead, given the climate emergency, now may be timely for the renewable energy sector to bring forward planning applications.

The council elections also saw many long-term political leaders depart the stage. Regardless of your political persuasion, those former leaders take with them years of knowledge of engagement with their local MPs and Whitehall, which is priceless when it comes to unlocking funding. The good news is that many of the new leaders are keen to engage with businesses and listen to their concerns.

National landscape

Businesses must also consider the implications of the national political landscape and its impact on local relations with the community and stakeholders. For the first time in more than a decade many districts find themselves with an incumbent Conservative MP and an opposing party in charge of the Town Hall. This brings with it the risk of national political issues being played out on the local stage, and the danger of local projects being caught in a political crossfire, being held up or derailed. 

As we get closer to the General Election, how proposals for new homes, offices, factories or renewable energy projects are received by the local community will influence the position adopted by the respective MP. Briefing key people before going public is something Maxim would always recommend.

With the Government’s Levelling Up policy continuing to look north, we need a strong voice for Kent, Sussex and Surrey more than ever. The public and private sector, as well as politicians, continue to argue the case for more funding to be directed towards the South East, to tackle the issues holding back economic growth and social wellbeing in the region.

The council election results, combined with the recent by-elections, will be causing some MPs sleepless nights. With all bar one being Conservative, now would seem the right time to push the case for greater Government support to tackle the challenges facing our region.

Voices

Businesses and local authorities will shortly lose an important regional voice, after the Government took the decision to scrap the network of Local Enterprise Partnerships from April 2024. The LEPs have acted as a conduit for national funding through their respective areas, in our case the South East LEP covering Kent, Essex and East Sussex. The funding will now be channelled more locally, through upper and lower tier authorities, possibly involving a degree of influence from the likes of the Kent & Medway Economic Partnership.

Businesses have to carefully navigate this complex environment when it comes to their engagement with stakeholders. New relationships have to be forged and fresh insights gained to stay abreast of changing political imperatives and take advantage of the opportunities these may bring. 

And as always, after 28 years of being in business, the team at Maxim continues to make its detailed regional knowledge and experience available to help guide businesses through the ever-evolving political landscape.
 

Andrew Metcalf - Director

Andrew Metcalf

Maxim / Managing Director

posted in: advice, public relations, reputation management,

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