Labours’ Growth Agenda: Where the Funding Opportunities Will Be

Labour’s Budget prioritises manufacturing, green energy, digital innovation, construction and infrastructure. The Government argues these sectors will drive a new era of productivity. The Conservatives counter that without proven delivery mechanisms, the plans could leave SMEs exposed. Kemi Badenoch warned that many of the Budget’s ambitions depend on businesses investing heavily before seeing any benefit.

Lenders are paying close attention to these political signals. When a sector is highlighted by the Government, lending appetite often improves. Yet this varies widely across industries and lenders.

Take the renewable sector. A solar installation company recently secured expansion finance after previously being turned down earlier in the year. The lender specifically referenced the Government’s focus on energy security and green investment.

Compare this with hospitality. A restaurant chain attempted to secure a working capital facility and was met with stricter stress testing. Although Labour has emphasised growth, the sector is under pressure due to rising wages and energy costs. The lender was not yet convinced that the Budget would ease these pressures quickly enough.

Even within construction, there is a split. One developer secured funding for a new housing scheme because the lender saw opportunity in the Government’s push for planning reform. Meanwhile another developer was declined because the lender was cautious about delays in the planning system despite political promises.

This shows that opportunities exist, but depend on sector positioning and lender confidence.

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