What the Landslide Labour Victory Means for the Beauty Industry

Labour has won the UK 2024 general election in a landslide, with Keir Starmer to become the new prime minister, ending 14 years of Conservative governance. This political shift is expected to bring significant changes across various sectors, including the beauty industry. Here’s what the beauty industry can anticipate from the Labour government based on their manifesto and campaign promises.

Tax Reforms and Financial Support

One of Labour’s primary economic pledges is to cap corporation tax rates and offer investment allowances, which could be beneficial for beauty businesses looking to expand or innovate. The British Beauty Council has highlighted the need for revising VAT policy and business rates, which aligns with Labour’s commitment to making the tax system fairer and more supportive of small businesses.

Investment in Skills and Education

Labour’s manifesto places a strong emphasis on education and skills development, which includes modernizing the apprenticeship system. For the beauty industry, which relies heavily on skilled professionals, this could mean better training opportunities and government support for apprenticeships. Reintroducing Child Benefit for apprentices and improving funding access for disadvantaged groups are also expected to enhance the workforce quality in the beauty sector.

Sustainability and ESG Initiatives

The beauty industry has increasingly been focusing on sustainability, and Labour’s commitment to green energy and decarbonisation could provide further support. The party's policies on promoting sustainable business practices and ensuring sensible implementation of Extended Producer Responsibility regulations are in line with the British Beauty Council’s priorities. This alignment could facilitate smoother transitions to more environmentally friendly practices within the industry.

Support for Trade and Regulation Stability

Labour’s plan includes promoting UK manufacturing and maintaining positive trade relationships with the EU. For the beauty industry, which often depends on both domestic production and international trade, these measures could ensure a stable regulatory environment and foster growth. Ensuring sector-specific regulatory stability is crucial for maintaining the high standards and safety the beauty industry prides itself on.

Boosting Economic Growth and Innovation

Labour’s overall economic strategy aims at fostering long-term growth and innovation. The beauty industry, known for its rapid innovation and dynamic market, stands to benefit from policies that encourage economic resilience and growth. The focus on partnerships with businesses and investment in clean energy can provide a conducive environment for beauty businesses to thrive and innovate.

Labour’s landslide victory brings a wave of change that aligns well with the beauty industry's needs and aspirations. With tax reforms, investment in skills and education, support for sustainability, and a stable regulatory environment, the industry can expect a more supportive and growth-oriented framework. As the new government begins to implement its policies, the beauty sector should prepare to engage proactively with these changes to maximize the potential benefits.