It’s been a busy weekend with Starmer reshaping his government following the resignation of Angela Rayner. Whilst the politics has centred on Westminster, this has far wider policy implications which will impact businesses here in the East. This is no doubt a difficult period for Labour, but the wheels of government will keep on moving with a renewed sense of urgency to deliver meaningful change over the next four years.

Ministerial changes, both at Cabinet and junior minister level, are never just about political appearances. Each new appointment brings a fresh perspective, a desire to “put their own stamp” on policy and, of course, wider political ambitions. This has been a significant reshuffle across key policy areas from housing, infrastructure, energy to skills with several key briefs handed to new teams. So, what are the policy implications for the East and, more broadly, how does the politics impact the region?

Policy refinement not revolution

Whilst Labour will be looking to refine its policy plans and speed up delivery, this is not a wholesale change in direction. Labour’s central mission and pledges very much remain. Aside from the politics of Rayner as deputy Prime Minister stepping down, she was in charge of one of the government’s key priorities to deliver 1.5 million new homes. This will continue to be a central policy ambition.

However, with Steve Reed now taking over the housing portfolio, there will be pressure for quick wins and to show progress is being made. Whilst Rayner was known to have a more direct approach with local authorities that blocked development, Reed has a background in local government and has previously been sceptical of plans to reduce local democratic control over planning.

Here in the East of England, there will be a drive to unlock land for development. Reed has also been vocal about the need to incentivise developers to build more quickly and has previously criticised the tactics of “land banking.”

Investment in energy and infrastructure

The reshuffle‘s impact on energy and infrastructure is equally vital for our region. The East of England is at the forefront of the UK’s green energy transition with key offshore wind projects. We of course also have Sizewell C which has the green light to proceed. This is a critical part of the government’s long-term energy strategy and the project is expected to provide clean energy for the equivalent of six million homes and support 10,000 jobs during peak construction.

Whilst Miliband remains in charge of energy security and net zero, there have been some movements at a ministerial level. The reshuffle saw Miatta Fahnbulleh, the minister in charge of the government’s landmark Warm Homes Plan, moved to housing, communities and local government so we may see some further refinements. Whilst the government has committed to its £13.2 funding plan, we’ll have to wait for the Chancellor’s upcoming Budget (26 November) to assess the impact on other policy areas.

When it comes to infrastructure, the government also remains committed to its 10-Year Infrastructure Strategy, backed by £725 billion in funding, alongside key projects from the Lower Thames Crossing to the A12 upgrades.

Tackling the region’s skills shortages

One of the most significant challenges for the East of England is the skills shortage. The region has consistently faced some of the highest skills shortages in the UK which stifles business growth and productivity. The government reshuffle has seen skills policy moved from the Department for Education to an expanded Department for Work and Pensions under Pat McFadden.

This structural change signals a new emphasis on linking skills development directly to market needs and employment. For local businesses, this is an opportunity to engage with the government on the specific skills gaps and advocate tailored training programmes and initiatives to tackle this issue.

A changing political landscape in the East

Aside from the policy implications, the reshuffle is also a recognition by Labour of the changing political landscape. PLMR’s quarterly polling with Electoral Calculus has consistently shown Reform gaining ground in the East. Our latest analysis showed that, if an election were held tomorrow, Reform would win 35 out of 43 seats in the region. Not only would this make them the biggest party in the East but, nationally, they would be able to form a government with a significant majority.

Consequently, over the next four years, Labour MPs elected for the first time in the East at the last election will want to demonstrate the improvements they are making to the lives of their constituents. Labour remains very much in listening mode. That’s why now is the perfect time to engage and help shape local policy.

Get in touch with our team to find out more.