How we make the case for regulation ahead of the general election

It’s difficult to imagine a Tory conference taking place without a nod to deregulation. And this year didn’t buck the trend.

A conference dominated by Tory factionalism, Liz Truss’ ‘Growth Rally’ and the lurking presence of Nigel Farage, saw the Prime Minister promise a more ‘agile regulatory system’ to ‘free up businesses’. Just two days before his speech, Business Secretary Kemi Badenoch announced the government is launching a ‘review of regulators to cut red tape and bureaucracy’ – so no prizes for guessing what he means by ‘agile’.

The Labour Party conference struck a different tone. Starmer and Reeves set out their vision for a ‘decade of renewal’, built around a shift away from the stand-aside state which has failed to serve the public interest and continues to be an ‘irresponsibility towards the future’.

Promises to clean up river pollution through tough sanctions on water companies, fix our crumbling school buildings and strengthen worker protections, as well as commitments to tackle covid fraud and regulate tech giants showed the Labour Party is serious about creating a modern state that uses regulations to protect the public and promote economic stability.

But there is certainly still work to be done. Whilst the fringe circuit hummed with arguments for better regulation, concerns about failures of enforcement and the occasional mention of a ‘libertarian virus’ in Britain, inside the conference hall there was little mention of the regulatory crisis facing the country.

Key members of the party acknowledge both publicly and privately that the regulatory system needs to be fixed. Last month we took part in a Progressive Britain panel discussion with Johnny Reynolds, the Shadow Business Secretary, which saw real momentum emerge around the idea that better regulation must underpin Labour’s economic plans. At our fringe event, long standing Labour MP Angela Eagle argued regulations need to play a central role in shaping Labour’s economic and environmental mission.

“We need a different philosophy around regulation. We need to get away from a market fundamentalist analysis of regulation and have a more transparent debate about why regulation matters.”

Dame Angela Eagle, MP

There is therefore an opportunity to work collectively to ensure that regulatory renewal sits at the forefront of their plans. We believe that there are three ways to make this case.

First, we need to continue making the electoral case for the pro-protections agenda. Our research shows that there is a significant electoral dividend in adopting a pro-protections agenda. Our focus groups with swing seat voters in the ‘Red Wall’ found no appetite for deregulation or a watering down of our standards. More recent focus groups in marginal swing seats found that voters care deeply about the enforcement of high standards and want to ensure that those who break rules face consequences.

We know that regulations are an important issue for the voters that an incoming Labour government will need to win over and we need to make it clear that they will reflect this at the ballot box. As the speakers on our panel said:

Luke Tryl, More in Common

“Most people know that regulations are not a bad thing but we need to continue highlighting the benefits, impacts and improvements that regulations bring to communities.”

Mellissa Green, The Women’s Institute

Second, we need to demonstrate that a pro-protections approach is consistent with the growth mission that drives Labour’s agenda.

With corporate lobbying in full swing at the conference, concerns have been voiced about the influence of this sector on a party that is so desperate to demonstrate its economic credentials. In their quest for a ‘shot in the vein’ solution to the sluggish growth which underpins the UK economy, there is a real danger that Labour could lean towards deregulatory approaches.

We need to make sure that Labour doesn’t swing towards this approach by setting out the economic dividends that come from better regulation. Whether it’s restoring regulatory funding to close gaps in enforcement capacity or strengthening the muscle of our regulators to enable them to take on exploitative businesses practises, a better regulatory system carries significant economic benefits.

UK Businesses support this vision for Britain. They know that regulation creates a level playing field, weeding out businesses that try to undercut whilst providing the stability needed to take long term investments. We saw this in action at the conference in Liverpool where both Asda and Sainsbury’s told delegates that they would support new laws to regulate the sales of unhealthy food. We need to make sure the Labour Party is assured of the fact that businesses don’t want the sort of wild-west economy set out at Liz Truss’ Growth Rally.

Finally, we need to amplify our collective voice and create a steady drumbeat of calls for regulatory renewal from across our different sectors. Building on our manifesto, we will continue working on refining a pro-protections narrative which can animate the key values of British voters and help address the growing crisis of trust which defines the public mood. Our goal is to work with policy and narrative experts alongside our supporters to develop a propositional offer which shows that strong protections can deliver the security and change voters crave.

The winds of change are certainly in the air. Now we need to work collectively to ensure that an incoming Labour government understands the value that better regulation can play in achieving the ‘decade of renewal’ they’ve promised.