The elections on 7 May - spanning English councils, the Scottish Parliament and the Welsh Senedd - delivered a verdict that will shape the political and economic context for businesses for years to come. The era in which two parties commanded the overwhelming majority of votes and seats appears to be fading. In its place is a more fragmented, volatile political landscape that presents both short-term uncertainty and longer-term questions for the policy environment.
As the CBI has done for over 60 years, we will continue to work constructively with governments and political parties across the political landscape. The Prime Minister set out his vision on 11 May which will be developed further in the government's remaining legislative programme unveiled in the King's Speech two days later. Whether we see renewed focus on delivery and tangible results; a change in leadership; or a complete change of direction, the CBI's mission will remain clear. We will continue emphasising the importance of the economic environment in public debate; championing members' priorities and calling for the political and economic bravery to boost growth, jobs, and investment across the UK.
This is what the national and local results mean for you:
The national picture
Labour sustained heavy losses across England, ceding significant ground to Reform UK and the Greens - both of which have established themselves as genuine political forces with distinct electoral coalitions and the institutional presence to influence the policy debate.
While the Prime Minister has today indicated his commitment to remaining in office, the government nonetheless faces a period of intense internal pressure. Markets have already shown sensitivity to UK political risk which would be compounded by a period of sustained instability. The King's Speech will be an early test of whether the government can build momentum and clarity.
The devolved picture
- Scotland: the SNP retained Holyrood for a fifth consecutive term, but without an overall majority as Labour suffered its worst result since devolution. First Minister Swinney has signalled intent to pursue an independence referendum before the next UK general election, a position that could inject tension into Scotland's relationship with Westminster. CBI Scotland is taking forward the Scotland Business Manifesto, keeping members' priorities at the centre of political debate. Since the election, colleagues have been making the case publicly that the next Scottish Government must put growth at its heart to tackle the fiscal challenges ahead.
- Wales: the change here is more fundamental. Plaid Cymru became the largest Senedd party for the first time with Reform as official opposition, ending over a century of Labour dominance. Businesses operating across Wales should anticipate a more distinct policy agenda, with the new administration likely to pursue greater devolved control over energy, infrastructure and fiscal levers. CBI Wales will take forward the Wales Business Manifesto in engagements with new Assembly Members.
With pro-independence or pro-autonomy governments now in place in Edinburgh, Cardiff and Belfast, the UK's constitutional dynamics will be an increasingly active dimension of the operating environment.
Representing business and driving the UK forward
The CBI will continue to be your champion across all of the UK's nations and regions, working relentlessly to equip political actors with the evidence, confidence, and backing necessary to cut the cost of doing business, fast-track delivery of commitments, and firmly place the UK at the cutting edge.
Not a CBI member? Join the CBI and help drive the the changes that will unlock economic growth.
Find out more about membership >