Keir Starmer became the new Prime Minister of the United Kingdom on 5th July 2024. With a change of government, there will be many organisations across the country wondering what this news means for them.
Thankfully, we can predict a lot of the changes likely to be introduced as a result of the King’s recent speech to parliament, which laid out the government’s agenda for the coming year. These forthcoming policies are poised to have far-reaching implications across various sectors, including Passenger Transport.
In this blog, we’ll analyse this shift in the political landscape, assessing the impact it will have on organisations, and how Passenger Transport businesses can navigate the times ahead.
What will the result mean for UK businesses?
Sir Keir has a significant majority, therefore we can expect that his Labour party will have a strong mandate to push through their manifesto. The landscape of policymaking and regulation will now undergo a significant transformation and organisations will need to be proactive if they are to ensure they’re prepared for what’s to come.
The result signals a shift towards policies that are highly focused on social welfare, environmental sustainability, and workers’ rights. For UK businesses, this could translate into increased regulation, revised taxation schemes, and a heightened emphasis on corporate responsibility. Companies will likely face adjustments in operational frameworks to align with the new government's agenda.
How will Passenger Transport companies be impacted?
Within the Passenger Transport sector, the government is anticipated to bring about changes that reflect the party's focus on public services and sustainable transportation solutions. Passenger Transport companies may experience a new approach with funding allocation, infrastructure development priorities, and regulatory frameworks aimed at promoting accessibility, affordability, and eco-friendliness in public transportation.
Here are some of the general changes that will impact organisations:
- Devolution and localisation – We can expect the government to devolve powers to nations and regions, meaning more services will be delivered locally, and regional governments will have greater budgets and greater spending responsibilities.
- A new deal for working people – This will include a ban on zero-hours contracts, higher wages for employees across multiple sectors, and more worker’s rights.
- New standards – Regulations to be introduced across the business landscape, such as enforcing investment in sustainable technologies and other practices that will help to bring about Labour’s vision of a better society.
And here’s a deeper dive into the more transport-specific policies:
Renationalisation
Labour have suggested they will renationalise most of the UK’s passenger rail services within the next five years. A new publicly governed body will take over existing contracts (once they have ended), with a promise of better service on trains, full internet capabilities, and instant refunds for delayed services. One of Labour’s mottos for the recent campaign was “Getting Britain Moving”, and the aforementioned public body has been coined as ‘Great British Railways’. They will be directly responsible for the services experienced by both passengers and freight users going forward. There are also potential plans for local governments to take over the running of bus services, giving them extra power and management responsibilities.
Bigger emphasis on sustainability
For a start, there will be a 2030 ban on petrol and diesel car sales. This overturns the previous government’s decision to extend the deadline to 2035. Although this isn’t a change that will exclusively affect those in Passenger Transport, it will likely influence the decisions made by operators going forward in terms of the makeup of their vehicle fleet, as well as individual citizens who may end up being increasingly reliant on public transport. More broadly there will be a greater focus on green initiatives too, with increased investment in renewables and energy efficiency as the country strives to create future-proofed jobs and hit net zero targets around carbon emissions. There will no doubt be tighter regulations introduced over time to reduce the amount of emissions companies are producing. There are plans to invest in sustainable air travel too, which will alter the way airlines operate.
Greater infrastructure investment
Budget priorities will be shifted away from repairs and towards bigger infrastructure advancements. Investments will be made in both road and rail, improving the infrastructure across much of the environment in which Passenger Transport organisations operate. There’s a commitment from Labour to put the necessary resources into transforming the transport infrastructure in a timely and efficient manner. They will create a time-bound strategy that will provide more clarity around national-level projects. And, tying in with the devolution topic we touch upon earlier, local leaders will be given more power to create integrated transport systems within their respective region. Reading Buses are already reaping the benefits of operating in conjunction with their local Council, and this approach should help them and others to get one step closer to the much desired interconnected ‘smart cities’ of the future, which has been a hot topic within the Passenger Transport sector.
How can organisations prepare for the changes?
To adapt to the evolving landscape, Passenger Transport companies can take several strategic measures. Embracing technological innovations to enhance service efficiency, investing in sustainable practices to reduce environmental impact, engaging in constructive dialogues with policymakers (to influence decision-making processes), and doubling down in addressing existing challenges (such as recruitment and staff attrition) are crucial steps for organisations to ensure they are best prepared to take advantage of government-driven changes.
Our 2024 Passenger Transport Trends Report highlighted that 62% of businesses in this sector have plans to upgrade their digital systems. So, it might be time to accelerate these plans. By streamlining their processes and ensuring they’re in the best possible shape (both from a financial and operational perspective), these companies will be much better prepared for this new era.
It’s essential to partner with a tech provider who understands your current needs and is capable of mapping out a tailored digital transformation journey going forward so that you remain on the cutting-edge. At OneAdvanced, we offer innovative software solutions that enhance your HR, Performance & Talent, Time & Attendance, Payroll, Spend Management, Financial Management, and Governance & Risk processes. Not only do these Cloud-based systems integrate seamlessly to enable automation, they also assist with maintaining regulatory compliance thanks to instant software updates that are applied remotely.
For further reading, be sure to check out our recently published e-book, ‘Desk-free workers: The asset businesses cannot afford to lose’, which looks at the role of these critical service workers across many different sectors, the key issues they’re facing on a daily basis, and what their employers can do to help in overcoming these challenges.