The Labour Party has won a landslide victory in the general election to end 14 years of Conservative rule.
Sir Keir Starmer will become Prime Minister after Labour amassed a huge majority.
The party took 412 seats – 211 more than in 2019, when it endured its worst result since 1935, and far more than the required 326 to control power in Westminster.
“We did it! You campaigned for it, you fought for it, you voted for it, and now it has arrived,” Starmer told his supporters.
“Change begins now. And it feels good, I have to be honest. Four and a half years of work changing the party.
“This is what it is for: a changed Labour Party, ready to serve our country, ready to restore Britain to the service of working people.”
Former Labour leader Jeremy Corbyn won his seat as an independent candidate.
Peter Kyle, Shadow Science, Innovation and Technology Secretary, increased his majority in Hove and Portslade to 19,791. He is expected to be part of Starmer’s frontbench.
He has previously stated that he wants to see the Department for Science, Innovation and Technology (DSIT) become the “the digital centre for government… responsible for delivering common platforms and reforming roadblocks to data exchange across the public sector”.
On general election day, what does tech sector want from next government?
Outgoing Prime Minister Rishi Sunak held on to his seat in Richmond and Northallerton and will remain at the head of the Conservative Party for now – but said Britain has delivered a “sobering verdict” after the Tories won just 121 seats, 250 fewer than in 2019.
Among those losing their seats were former Prime Minister Liz Truss, who was in charge for just 49 disastrous days in 2022.
There was also a resurgence for the Liberal Democrats, who have taken 72 seats, up 64 from 2019.
The Scottish National Party dropped 38 to just 9 after huge Labour gains in the country, while Sinn Fein – the Irish republican party which refuses to take its seats in Westminster, remained on 7.
Reform leader Nigel Farage will become an MP for the first time after his fledgling party won five seats while the Green Party won four.
Wales-focused Plaid Cymru will hold four seats, while the Northern Irish Democratic Unionist Party won five.
Labour won 33.7% of the vote, while the Tories won 23.7%, Lib Dems 12.2% and Reform 14.3%.
Labour general election manifesto pledges to ‘drive innovation’
James Robson, CEO of FundOnion, said the majority gives small businesses certainty and security – and for the government itself, an easier path to passing new legislation.
“They said vote for change. What we need to see from Keir Starmer and Rachel Reeves in the first 100 days is a clear commitment to small businesses – implementing innovative policies that cut the red tape holding back growth, that help with rising costs, and that support easier access to capital,” he said.
Gary Smith, partner in financial planning at wealth management firm Evelyn Partners, agreed.
“Labour’s majority gives the new government great executive power even if the proportion of the vote at 34% indicates a less emphatic popular mandate.
“The super-majority could at some point open policy doors that otherwise would remain closed. After all, Starmer’s government would have to antagonise a huge number of the voters it has gained to hand back the 90 seats or more that would be required to lose its majority at the next election.
“So it’s possible that, further into the Parliament, the government will feel it has the leeway to implement a bolder agenda.”
Forbes McKenzie of McKenzie Intelligence Services said the outcome was a “rude awakening” for the Tories. “We support Labour’s commitment in addressing vital issues affecting small businesses, advancing towards granting rights and protections for the self-employed, including those on zero-hour contracts.
“The issue surrounding increased taxes is of great concern for business owners and needs to be at the forefront of Labour’s proposed change in policies. The government can still benefit from greater UK employment via PAYE taxes and VAT on internal services, which could be achieved by raising wages and increasing the size of local work forces.
“Any tax reviews raised by the party must consider the significant impact that will be placed on small businesses and the self-employed.”
Lily Megson, policy director at My Pension Expert, said Starmer and his party must not be complacent.
“Britons have experienced a great deal of financial hardship throughout the final years of Conservative governance,” she said. “Financial planning – particularly retirement planning – has been an uphill battle for many Britons. As such, it is vital that the incoming government work rapidly to ensure economic stability.”
Alan Price, CEO at BrightHR, said it is welcoming Labour’s commitment to invest in digitalisation and empower the domestic tech sector – including plans to create a Regulatory Innovation Office to update regulation, reforms to accommodate greater investment into data centres, and new 10-year R&D budgets to create longer-term tech partnerships and boost innovation.
“The value of the technology sector in the UK is set to grow exponentially over the next few years, and strategic investment will be critical to ensure that tech businesses can continue to thrive against a backdrop of global economic uncertainty,” he said.
“Labour has emphasised its support for our sector, and we look forward to seeing how these changes will be implemented in the coming weeks and months to maximise the incredible economic potential of tech enterprises in the UK.”
Dale Peters, senior research director at TechMarketView, said delivering economic growth and raising productivity will require the new government to create an environment where innovation can thrive.
“Labour plans to create a National Data Library to help deliver data-driven public services and introduce a new industry strategy to support the development of the AI sector and remove planning barriers to new datacentres,” he said.
“It will introduce 10-year funding cycles for key R&D institutions and aims to develop better industry and academic partnerships. All of which will be welcomed by the tech sector.”
Kate Palmer, employment services director at HR firm Peninsula, said employers should be prepared for significant changes to employment law as they look to strengthen employee rights.
“With more than 60 proposed changes in their manifesto and a pledge to bring in the majority of these changes within 100 days of taking office, now is not the time to relax,” she warned. “We can expect to see a significant rise in the number of employment tribunal claims being brought once these changes come into law, so it’s more important than ever for businesses to ensure they are across all potential changes, updating policies and contracts as needed to ensure they remain fully compliant.”
Russ Shaw CBE, founder of Tech London Advocates and Global Tech Advocates, said one of the core objectives for the new government will be to drive economic growth for the UK in the mid-to-long term – and the tech sector needs to sit at the heart of that plan.
“We are in the golden age of UK tech – startups attract the second highest level of investment globally and British businesses are consistently producing world-leading technologies – and the new government must prioritise strengthening the tech sector to drive wider economic prosperity,” he said.
“Tech skills shortages remain a significant challenge for the sector – even more so with the advent of generational technologies like AI. The UK must do better at skilling the workforce at home, and enabling access for companies to best-in-class talent from around the world, starting with an overhaul of the visa process to better support startups and scaleups.
“As this new government looks at the decade ahead, the tech sector must sit at the forefront of any agenda to boost economic growth – recognising it as a significant driver of employment, investment, economic output and the UK’s international standing.”
Taavet Hinrikus, partner at Plural and co-founder of Wise, said the UK urgently needs to find a solution to stagnating growth and reinvigorate the digital sector.
“As founders and investors, we have seen the impact that harnessing the power of transformative technologies can have on a country’s prosperity and GDP through job creation and opportunity for all,” he said.
“We welcome Labour’s plan for a modern industrial strategy that leverages the UK’s tech strengths and a National Wealth Fund to capture long-term value, as well as the incoming government’s commitment to innovation to solve the climate crisis.
“To succeed, the new government must invest in infrastructure, resources and industries shaping the future, from data centres to fusion energy. We must also ensure that the most talented individuals are not deterred because of high visa costs and red tape. While progress has been made, consistent policy and regulation are needed to unlock the full potential of the startup tech sector and drive future growth.”
Stefano Vaccino, founder and CEO at Yapily, said Labour’s commitment to fostering innovation and supporting high-tech industries is promising for the FinTech sector.
“However, to truly seize this opportunity, Labour must prioritise addressing the regulatory paralysis that is creating so much uncertainty for the sector, specifically the last government’s inability to pass the Data Protection and Digital Information (DPDI) Bill and the ongoing uncertainty surrounding Open Banking Limited,” he said.
“We urgently need to reinstate the DPDI Bill to establish a clear, authoritative body to drive open banking forward, or risk losing our competitive edge to more proactive markets. If regulatory instability and inaction continues we will see investment go to rival markets, jeopardise the economic benefits and job creation that fintech brings, and miss the critical opportunity to create better and fairer financial services for all.”
Santosh Sahu, CEO & founder of Charac, said increased funding in high-growth enterprises with potential should be a priority – with UK HealthTechs now looking to the US.
“The biggest challenge our startup landscape is facing is the exodus of businesses from the UK to the US…. HealthTech today in the UK is comparable to where FinTech was over a decade ago. It was regulations such as Open Banking and a regulatory sandbox that facilitated the UK becoming a world leader in FinTech.
“This is something the government has not yet addressed – and with Labour’s calls for a more digital, interconnected NHS, they will need to look at regulations that actually facilitate competition, collaboration, and interoperability to accelerate the UK’s economy, and create a more favourable environment for startups.”
Suranga Chandratillake OBE, general partner at Balderton Capital, called for a founder-friendly regulatory landscape and access to capital to ensure that entrepreneurs continue to start and scale their businesses here in the UK.
“We are encouraged by Labour’s commitment to supporting this vital sector… key to the challenge will be investing in education and skills to foster local talent, remaining open and welcoming to the best of global talent, providing access to finance from spinout to startup and scaleup – and ensuring our regulatory frameworks tread that careful line between safeguarding society and allowing for innovation.”
Steve Crompton, a tax partner at accounting and advisory firm JS, said the conversation must be steered towards creating a more business-friendly environment that reduces administrative burdens and fosters innovation.
“Sensationalist headlines about tax changes distract from the pressing need for practical solutions that address the regulatory challenges businesses face daily… we urge the new government to prioritise regulatory reforms and support mechanisms that will make a real difference for SMEs across all sectors the UK.”