The shift to a Labour government heralds potential changes across the facilities sector and we have taken some time to consider the risks and opportunities in their policies which may affect our business model. Labour's policies emphasises public investment, social equity, environmental sustainability, and workers' rights. Key areas relevant to Glen may include:
1. Infrastructure Investment
Although the Chancellor Rachel Reeves has confirmed that there will be no public money , the Labour governments has advocated for increased ease of planning for private funding for house building and other infrastructure new building projects, refurbishment of existing structures, and improving public spaces.
A focus on expanding and improving public services such as schools, hospitals, and social housing will lead to increased demand for services in the public sector. With potential increased demand, and a large number of public sector contracts, already, we are building a credible offer for construction and maintenance building project cleaning, social house cleaning following refurbishment and park and recreation cleaning services including waste management services to expand our offer.
2. Environmental Sustainability
Labour has put a strong emphasis on green policies, aiming for net-zero carbon emissions, investment in renewable energy, and energy-efficient buildings and legislative requirements may follow. Further focus on our green credentials may be of benefit including energy efficient technology, rather than labour , where increased hourly rates will enhance the costs. We anticipate that there will be increased regulatory compliance as upgrades to buildings and new builds are confirmed and we will make sure we are aware of these and implement practises.We also intend to improve our data management and information reporting, which will help our clients identify value.
3. Workers' Rights and Employment
One of the significant changes is the planned increase in the minimum wage to 'genuine living wage'. This will involve changing the remit of the independent Low Pay Commission - which advises the government on the minimum wage - so it accounts for the cost of living for the first time. Labour have also said it would also remove age bands so that all adults are entitled to the same minimum wage of what is anticipated as £12.
Labour’s commitment to enhancing workers' rights, including higher minimum wages, better working conditions, and more robust trade union support, may impact the operational costs and management practices within our operating model and potential increased costs for our clients.
Cost management will necessitate a focus on the pricing strategy and alternatives in service delivery options, or flexibility in cleaning out put specifications rather than input and increased training for employees to recognise and respond to specific high footfall areas, improving operational efficiency. We anticipate the introduction of new funding opportunities and grants for training programs.
Labour also emphasised strengthening workplace rights and protections. This includes:
• Enhanced job security measures, such as day one employment rights.
• Stricter regulations against unfair dismissals.
• Improved provisions for maternity and paternity leave.
• Increased support for mental health in the workplace.
Increased support for the menopause
4. Private Schools
The Labour Party has outlined several key policies regarding private education, with the goal of addressing educational inequality and improving the state education system. These plans aim to reduce the advantages private schools have over state schools and ensure fairer distribution of educational resources.
Key Policies
Removal of Charitable Status Labour plans to strip private schools of their charitable status, which currently grants them tax exemptions and other financial benefits. By removing this status, private schools would be subject to the same taxes as other businesses
VAT on Fees
Integration with State Sector - Labour suggests that private schools should form partnerships with state schools to share resources and best practices.
Critics argue that these policies could lead to unintended consequences, such as increased strain on the state education system if private school closures drive more students to public schools. Additionally, there are concerns about the potential for legal challenges from private schools regarding the removal of charitable status and the imposition of VAT.
These policies will lead to profit erosion and we are cognisant that managing costs will be of critical concern.
5 . Social Value
Social value refers to the non-financial impact of Glen, including the well-being of individuals and the communities and the environment in which we work.
1. Community Well-being is about how we can enhance the quality of life for people who work for us , or in the community we serve
2. Environmental Sustainability means how we protect and sustain the natural environment for future generations.
3. Economic Benefits, is about generating jobs and supporting local communities.
4. Building trust, relationships, and networks that work together for the common good.
To bid for Public sector contracts, we must show that Glen is a company where Social Value matters and is at the heart of what we do.