Sector: Government Relations and Public Affairs

Let’s set the scene

With just seven months until the Senedd election and a tightly contested by-election in Caerphilly looming, Plaid Cymru’s Annual Conference arrived at a pivotal moment. Delegates gathered in Swansea with a sense of momentum and anticipation, thanks to recent polling indicating a shift in government from May 2026 for the first time since devolution. This year marked a noticeable shift from those that came before, with a noticeable surge in attendance from members, charities, and first-time participants, all keen to engage with what could be the future leadership of Wales.

The conference kicked off with some unexpected drama, with Friday’s two renewable-focused fringes disrupted by a delegate who voiced strong opposition to renewables and was subsequently escorted out. Alongside Saturday’s protest, this incident reflected some of the internal tensions within the party around energy policy. Plaid remains firmly committed to the net zero transition, but the party has been clear that community buy-in is key to these ambitions. The events served as a reminder that Plaid faces a difficult balancing act between its net zero ambitions and the interests of local communities, especially in its rural heartlands.

Rhun ap Iorwerth takes to the stage

As expected, Rhun ap Iorwerth’s speech sought to reach out to disillusioned Welsh voters, driving home the point that Plaid is the only viable, progressive alternative to Labour and pledging to restore public trust. He accused Reform – whom he branded as the “ultra-Conservatives” – of using the Senedd as a “plaything” to gain an “electoral foothold”. He went on to reiterate what he said was the need to free Wales from the “shackles” of a Welsh Labour government. The party leader also dismissed suggestions that Labour is the only party with the experience to govern.

In terms of new pledges, the Leader’s announcement of an extended free childcare commitment, which he identified as a major barrier to parents returning to work, was a hit with the crowd. While the proposal was well received, its five-year rollout means the impact will be gradual.

Rhun ap Iorwerth stuck to his commitment to hold off on the independence vote until after the party’s first term, instead promising to establish a Standing Commission to explore independence. Members later voted on a motion for this commission to engage citizens, research issues of relevance and ultimately prepare a White Paper on an independent Wales. With this clear step-change from his predecessor, Rhun ap Iorwerth appears to have been attempting to strike a balance between appealing to indie sceptics, while not alienating Plaid’s key supporters.

Plaid’s priorities and pledges

In terms of wider pledges, the number of announcements was smaller than some may have expected. On Saturday, Education spokesperson Cefin Campbell set out the party’s new national mission on literacy and numeracy. Besides this, there were few other new announcements – and notably nothing new on the economy, housing or health. Rhun ap Iorwerth did have a line ready to defend this, however. In a Q&A with Llywydd Elin Jones, he reminded naysayers that Plaid has been steadily unveiling pledges over recent months. It is also worth noting that, compared to Wales’ wider parties, Plaid is considerably ahead of the game across both the manifesto development and candidate selection process.

Speaking of candidates, Caerphilly councillor Lindsay Whittle – a top contender in next week’s by-election – took to the stage on Saturday to encourage voters to stand against the “fancy men from London in their posh suits”. Besides the warm welcome and his striking red suit, he spoke of the need to persuade Reform voters on the doorstop, rather than insult them.

But what about big business?

Despite the positive energy throughout this well-attended conference, one absence was hard to ignore: Plaid’s offer for big business and investors. While some large corporates were attending as observers, the party’s agenda leaned heavily toward third sector, public sector and community-based topics, with limited space for corporate engagement – beyond the key players in renewables. Conversations in the margins indicate that Plaid is keen to tell a strong story on the Welsh economy – indicating that, potentially, there’s a clear opportunity for businesses keen to invest in Wales to help the party shape its messaging over the coming months.

Interested in discussing your engagement strategy ahead of next year’s Senedd election? Please contact Grayling’s Public Affairs team in Cardiff or reach out directly to kate.mitchell@grayling.com.

“Quiet here, isn’t it?” is how many conversations in Manchester began this week. The Conservative Party Conference this year was certainly a smaller and quieter affair than it has been for a long time. With last year’s conference dedicated to the leadership contest, this is the first ‘ordinary’ Tory gathering in Opposition since 2009, and it felt noticeably different for it.

And once attendees had moved past discussion of how quiet Conference was, there was only one topic on everybody’s lips – the leadership. It is, of course, not unusual for Tories to speculate about changing their leader, whether in Government or Opposition. But consensus before Conference was very much that the departure of Kemi Badenoch as Leader is a matter of when, not if.

That being said, Badenoch and her team did everything they could to keep people talking about anything else, with what can only be described as a policy blitz over the course of the four days. Although this began with eye-catching (and expected) announcements designed to stave off the exodus of voters to Reform UK, such as leaving the ECHR and scrapping the Climate Change Act. But, as the Conference progressed, the focus shifted onto economic and domestic matters as a means to seriously differentiate the Conservatives from the other political parties.

Whilst the announcement of intentions to scrap stamp duty, reform business rates and rethink the judicial appointment process might not be ‘sexy politics’, they were part of a twofold strategy from the leadership. Firstly, the plan of holding policy back and just speaking about ‘values’ for the first few years has been clearly dropped, in a bid to try and get more engagement from the media. But more importantly, they indicate the Conservative Party’s policy direction moving forward, returning to their most comfortable ground – the economy.

Another oft-repeated line at Conference, by MPs and shadow ministers, was that the Tories are the only party right-of-centre on the economy. They know that talking about migration and cultural matters is important, but there is a growing consensus that they cannot “out-Reform Reform” on these topics, at least for now. So, by leaning into the economy, there is the hope that the Conservative Party can present itself as taking on the real concerns of voters, especially those in the South who might be looking toward the Lib Dems. Not only that, but this approach also allows them to have a concerted pop at the Government, whilst trying to reconnect with business. The challenge will, however, be when Labour – and indeed voters and industry – will retort with two simple words – “Liz Truss”.

But even with a change of leadership in the offing – MPs, aides and staffers are split on whether that is most likely to be in November (when the rules permit a formal challenge) or May (after the local elections) –  a refreshed focus on economic policy shows where the Conservative Party wants to be heading. With a diminished parliamentary cohort, the same figures will be playing a key role irrespective of the leadership over the course of this Parliament. Indeed, some of the new MPs, like Katie Lam or Harriett Cross, are making a name for themselves within the Party and across social media in particular with their strong communication and details-based approach. The small number of MPs means that each has more space to push the leadership, and indeed the Government, on policy areas of interest. Despite last year’s crushing electoral loss, a third of Tory MPs are new to Parliament, and stand ready to make their mark and have the space to do it.

The Conservative Party knows that it has a lot to do to regain the trust of voters and businesses, but Conference marked a shift in its approach to how it will do this. The question is how long the approach – and indeed the Leader – will be able to last if the polls don’t change?

To discuss your Opposition engagement strategy with our public affairs team, please contact zak.wagman@grayling.com

As the dust settles on a Labour Party Conference used largely to draw the battle lines with Reform ahead of a pivotal election period next year, transport policy found itself quietly sidelined. What was (and what wasn’t) said about rail dominated the transport space, but the question remains – where do we go from here?

It wouldn’t be surprising if the Transport Secretary, Heidi Alexander, left Liverpool feeling deflated. In the build up to conference, lofty ambitions to revive Northern Powerhouse Rail (NPR) were touted in the press and transport was going to be front-and-centre of Labour’s conference offer. However, as the Prime Minister rowed back on the move, Alexander took to the stage to focus on ‘national renewal’ and the threat of Reform.

Rehashing renationalisation

Part of this pitch was focused on the shift towards rail nationalisation, reiterating Labour’s central view that the current system is run in the interest of private profit. Alexander then listed the next rail operators to be nationalised (West Midlands Trains, Govia Thameslink, Chiltern Railways and Great Western Railways). Although none of this was new in terms of policy announcements, it received a rapturous applause around the conference hall, which was exactly the intention – and indeed a theme amongst all Cabinet speeches – to play wholeheartedly towards a weary party faithful.

Once again, a major piece of Northern transport infrastructure has been pushed down the pecking order, reflecting a familiar theme across successive governments – rowing back on long-term infrastructure investment when the going gets tough.

Labour made a promising start to deliver a favourable long-term investment landscape, with the 10-Year Infrastructure and Industrial Strategy signalling intent. However, for business leaders in the North of England, strategies without a concrete commitment to invest are only half the battle.

The impact on the North

While West Yorkshire mass transit is to be applauded, there remains uncertainty over wider schemes desperately needed across the country. NPR was promised over a decade ago, and is estimated to add £7bn GVA to the UK economy per year, largely in the North, yet, we remain far from breaking ground. There is the argument that this adds further fuel to the fire of Andy Burnham in his potential leadership manoeuvring, but what is clear is the ‘chicken and egg’ situation between infrastructure and economic growth is one that continues to plague the North.

Without investment in transport, productivity and connectivity remain stifled. Yet without demonstrable economic uplift, the case for investment is weakened. It’s a cycle that successive governments have failed to break, and Labour’s current posture suggests it may not be the one to do so either.

Transport, particularly rail, is not just a matter of connectivity – it’s a matter of economic justice. The disparity between transport investment in London and the South East versus the North is stark. According to IPPR North, London receives more than twice the transport spending per capita compared to the North. This imbalance has real consequences: it affects job opportunities, access to education, and quality of life.

Where does Labour go from here?

Heidi Alexander’s speech, while passionate, lacked the policy depth needed to reassure business leaders and regional stakeholders. Painting a GB flag on a South Western Railway train does not address some of the most fundamental and structural issues facing the rail network: outdated infrastructure and lack of capacity where it is desperately needed.

While Labour may not want to tie themselves down to an overarching transport strategy, there is a dire need to provide a long-term vision for the sector – one that spans political and economic cycles. The upcoming Integrated National Transport Strategy provides an opportunity for the government to lay its cards on the table and show a bold vision for transport.

If Labour truly wants to be the party of national renewal, it must start by delivering on the infrastructure that connects the nation – physically, economically, and socially.

If you or your business would like to talk about the future of UK transport policy, do get in touch with michael.broughton@grayling.com.

There is little debate that the first year of the Labour Government has been fraught. Despite some policy progress, the past few months have been marked by a string of resignations, u-turns and revolts among the Parliamentary Labour Party. Business relations have become strained and the Government feels bruised by poor public polling, entering Conference as an administration on the back foot.

It was in this context that the party faithful gathered in Liverpool at what can only be described as a conference lacking spark. This is remarkable, really, given we’re just over one year on from a landslide election and Labour has a sizable parliamentary majority. But against a backdrop of economic woes – and the rise of Reform – there’s a feeling that Starmer has tried to please everyone and in doing so pleased no-one, straying into the rhetoric of the right, and flip-flopping between a platform of social justice and economic growth at all costs.

The PM’s speech yesterday was a rallying cry: Labour will “renew Britain”, he said, and restore much-needed pride in communities. Throughout, Starmer appealed to so-called British values of respect and decency, a bid to reclaim a narrative of patriotism and pose the Government as the rational, sensible antidote to Reform-led chaos and division. The speech was hailed by allies as Starmer’s ‘most political’ yet, and he was reportedly speaking from the heart – the rumour mill suggesting it was largely penned by the Prime Minister himself, contrary to the usual behind-the-scenes drafting efforts from Downing Street advisers.

Light on policy, this didn’t feel like a speech for business. Indeed, the PM conceded that the Government has “asked a lot” from industry, and hinted that businesses might shoulder a short-term pinch for the benefit of long-term economic gain. There were also warnings of difficult choices, weathering storms and global volatility – setting the tone for trade-offs and compromises at the Autumn Budget next month.

In the room, the ultimate goal was to demonstrate change in action – to reassure jittery members and urge the party faithful for patience and trust that government can deliver. But outside the conference hall, the challenge for the PM will now be ensuring his vision resonates with voters at a tangible level amidst a political environment dominated by culture wars and polarisation. Rhetoric aside, will voters feel better off and see proof that the policy programme is working?

What will be most telling, though, is not what Starmer said but how it lands within his own party. The deputy leadership race is already being touted as a proxy war between Starmer and Greater Manchester Mayor Andy Burnham. This is perhaps unfair, for both Philipson and Powell are two accomplished leaders in their own right. Nonetheless, the contest has highlighted a growing divide between the Cabinet and dissatisfied voices on the soft-left. It’s unsurprising then that Starmer used his platform to fire some thinly-veiled shots towards the Burnham camp, steadfastly recommitting to the Government’s fiscal rules and rejecting a wealth tax and other so-called ‘easy solutions’.

So, behind the platform of national renewal, factions are deepening. Over warm wine and nibbles, the questions on everyone’s lips: has Andy Burnham moved too soon? Can Sir Keir step up to the fight of his political life? And does the Labour Party need a change of direction to tackle the threat of Reform?

Ministers have been quick to dismiss hints of an impending rift within the party (as one might expect). But, in this new order, it seems Labour must quickly decide which party it wishes to be. For now, not being Reform might just be enough.

To get in touch with our Public Affairs team, please contact Helena.Cox-Smith@grayling.com.