One of the key takeaways from BusinessLDN’s briefing with Varun Chandra, the Prime Minister’s Special Adviser on Business and Investment, this week was the need for firms to clearly articulate the size of the prize when engaging with the Government and what Ministers need to do to help deliver as part of their growth mission.
In a wide-ranging and candid discussion, Varun provided interesting insights on the challenge of reforming the machinery of government and tackle risk aversion at the same time as trying to deliver major policy reforms, such as changes to the planning system, amid wider geopolitical tensions.
He acknowledged there is more work needed to ensure the Government’s mission-based approach works in practice and cuts across silos in Whitehall, with the Industrial Strategy an important moment for industry to “kick the tyres” on the sector plans that are currently being developed.
As well as outlining his ambitions for the UK to attract more than our fair share of global capital, Varun also talked us through the “four pillars of ‘Starmerism’:
- Policy stability: reducing the risk premium investors attach to the UK – at a time when there is significant uncertainty in other international markets – by establishing a clear direction of travel for this Parliament, utilising a mission-based approach to tackling silos.
- Active engagement and partnership with industry: working with business through the Spending Review and Industrial Strategy process, as well as through bodies such as the National Wealth Fund, Office for Investment and GB Energy to catalyse private investment. Varun gave the example of energy market, with the Government having a critical role to play in developing a strategy that boosts supply and improves grid connectivity by working closely with regulators and firms.
- A strategic approach to foreign policy: strengthening links with key trade partners around the world based on a rigorous mapping exercise focusing on the UK’s key interests. Varun highlighted the Government’s attempts to strengthen relations with the European Union, India and China – as well as maintaining a close partnership with the United States.
- Reshaping the UK landscape to make it easier to do business: continuing a programme of regulatory reform whilst cementing progress in areas like planning reform via the upcoming Planning & Infrastructure Bill. Varun acknowledged business concerns around the increase in employer National Insurance Contributions and the Employment Rights Bill, but these should be taken into the round over the arc of the next few years as the Government sets out more pro-business measures.
Questions from members covered the need to tackle delays to the building safety gateway two process to boost housing delivery, how artificial intelligence could reshape business over the decades ahead, and next steps for the forthcoming Industrial Strategy.
Thank you to Landsec for hosting us and members for putting forward engaging questions for Varun.