The Effect of Labour on the Children’s Activity Provider Sector
As the recent UK general election concludes, it’s crucial to understand the potential implications of a Labour government for Children’s Activity Providers as we analyse their manifesto pledges. Here’s a brief summary of the key points that could affect our industry:
Economic stability
Labour have promised to bring down the cost of energy, reduce food prices, make housing more affordable, expand access to childcare, and make work pay. They will support families with children by introducing free breakfast clubs in every primary school. We will also bring down the cost of school by limiting the number of branded items of uniform and PE kit that schools can require. Labour will also keep mortgage rates as low as possible and will not increase taxes on working people.
This will hopefully mean we begin to see an improvement in the ‘cost of living crisis’, which many of you have been concerned about its impact on your customers’ spending habits.
Business taxation
Labour will cap corporation tax at the current level of 25 per cent. And they will give firms greater clarity on what qualifies for allowances to improve business investment decisions.
This means that over the term that Labour are in parliament, corporation tax won’t be increased, which means more money on your bottom line.
Driving innovation
Labour will ensure the safe development and use of AI models by introducing binding regulation on the handful of companies developing the most powerful AI models.
The introduction of AI regulations will impact how we all use AI in our businesses.
Making work pay
This will include banning exploitative zero hours contracts; ending fire and rehire; and introducing basic rights from day one to parental leave, sick pay, and protection from unfair dismissal.
You may be required to review your staffing models and HR policies accordingly.
Labour will also remove the discriminatory age bands, so all adults are entitled to the same minimum wage, delivering a pay rise to hundreds of thousands of workers across the UK.
This increase could result in an increase in your operational costs.
Best start in life
Labour are introducing free breakfast clubs in every primary school. This is an opportunity that Children’s Activity Providers could tap in to. If you could offer breakfast clubs in schools, start preparing to offer your services now.
Children’s mental health
The struggle to access mental health support is paralysing children and young people through their formative years. Labour will provide access to specialist mental health professionals in every school, so every young person has access to early support to address problems before they escalate. This will complement Labours plan for Young Futures Hubs, which will make sure every community has an open-access hub for children and young people with drop-in mental health support.
It is good for you to be aware of these changes, so that you can sign post families accordingly.
Access to arts, music and sport
Labour will support children to study a creative or vocational subject until they are 16, and ensure accountability measures reflect this. We will get more children active by protecting time for physical education, and supporting the role grassroots clubs play in expanding access to sport.
We will also launch a new National Music Education Network – a one-stop shop with information on courses and classes for parents, teachers and children.
These changes could have some benefits to those of you who work in the arts, music and sports subjects.
As the specifics of these proposals emerge in the coming months, it is vital for Children’s Activity Providers to remain informed and proactive. We will continue to track developments and provide updates to ensure our members are well-prepared for the future.