What a Labour Government Means for the Engineering Sector

In a historic landslide victory, the Labour Party has ended 14 years of Conservative rule, ushering in a new era under the leadership of Sir Keir Starmer. This dramatic shift in the political landscape brings a wave of anticipation and hope, especially for the engineering industry, which is closely watching the new government’s next steps. With Labour’s comprehensive manifesto pledges, there is much to look forward to. This blog will explore Labour’s key promises and what they mean for the engineering talent landscape.


Labour’s Manifesto Promises

With Sir Keir Starmer’s Labour Party having won the 2024 general election in a landslide victory, all eyes will now turn to its manifesto pledges. Here are some of the standout commitments:



One of Labour’s most significant commitments is the creation of Great British Railways, effectively renationalising the UK’s rail system as existing private contracts elapse. This move aims to streamline operations, improve service quality, and foster greater investment in the rail network. Additionally, Labour pledges to accelerate the transition to electric vehicles (EVs) by enhancing the rollout of charge points and reinstating the 2030 phase-out date for new cars with internal combustion engines.



Labour plans to overhaul the planning system to advance new roads, railways, reservoirs, and other significant infrastructure projects. This approach aims to lower future project costs by cutting red tape and simplifying the construction of laboratories, digital infrastructure, and gigafactories. Greenpower Park, set to house a gigafactory supplying advanced lithium-ion batteries, supports this stance, highlighting the urgent need to secure global battery manufacturers and the associated supply chain.

Matthew Lumsden, CEO of Connected Energy, underscores Labour’s intention to promote a circular economy for critical minerals while bolstering the UK’s domestic battery manufacturing capabilities. He stated, “Second life EV batteries – repurposed into battery energy storage – should form a key part of this plan as they reduce our reliance on critical mineral imports while also creating the stability needed for an increasingly renewable electricity grid.”

Energy and Net Zero

Labour aims to establish Great British Energy, a new publicly owned energy firm, to boost domestic electricity production through investments in low-carbon sources such as renewables and nuclear. This initiative has been well-received by the renewable energy sector. Greg Jackson, founder of Octopus Energy, noted, “The results look clear – voters have rejected anti-net zero rhetoric and chosen cheaper, cleaner, more secure energy. This looks like a landslide for a green economy.”

Additionally, Labour plans to invest an extra £6.6 billion over the next parliament to upgrade five million homes, improving energy efficiency and reducing bills. Glynn Williams, UK managing director of global pump manufacturer Grundfos, supports this pledge but cautions that focusing solely on insulation will not suffice. He urges the government to consider extending schemes to include solutions like circulator pumps, thermostatic radiator valves, and pipe insulation.


Technology and Industry

Labour intends to introduce a new industrial strategy to end short-term economic policymaking, with an industrial strategy council providing expert advice. Dr. Joe Marshall, chief executive of the National Centre for Universities and Business (NCUB), advocates for placing innovation at the forefront of the government’s economic recovery plan. Labour also plans to invest £1.5 billion in new gigafactories for the automotive sector and £2.5 billion to support the UK’s steel industry.

Labour’s commitment to developing the AI sector includes removing planning barriers for new data centres and ensuring the safe development of AI through binding regulations. The party also promises to nurture a greater pool of talent in engineering and technology, with more apprenticeship opportunities for young people. Hilary Leevers, CEO of EngineeringUK, emphasises the need for a skilled workforce to meet current demand and help the economy thrive.


What This Means for the Engineering Talent Landscape

Labour’s sweeping plans signal a significant boost for the engineering talent landscape. The focus on infrastructure projects, green energy, and advanced technology will create a surge in demand for skilled engineers. This includes roles in transport, digital infrastructure, renewable energy, and industrial innovation. Companies will need to act swiftly to attract and retain top talent in a competitive market. Investing in training and development will be crucial to ensure a steady pipeline of skilled professionals ready to tackle these ambitious projects.


Labour’s victory proposes a new beginning for the UK’s engineering industry. The pledges outlined in Labour’s manifesto offer a promising vision for the future, but the industry’s success will depend on targeted action, investment, and clear strategies. By working together, the new government and the engineering sector can hopefully seize the opportunities ahead, drive innovation, and build a sustainable, competitive, and resilient future.

To stay ahead and secure the best talent now, get in touch with us. We can help you navigate this exciting period of growth and ensure your business is positioned to lead the industry.



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