Strategic Insights: An Overview of Pimlico's Market Intelligence Offerings

As 2024 unfolds, the political landscape across the UK, EU, and USA is set for significant shifts, driven by elections and regulatory agendas. These shifts present challenges and opportunities across industries that require close monitoring.

Alongside its projects in support of clients, Pimlico is launching a weekly Strategic Insight update series on our blog to showcase our market intelligence services and dissect some of the most complex challenges facing businesses today.

For clients, we offer our market intelligence, reporting and horizon scanning services packaged as macroeconomic reports, PESTEL analyses, white papers, and competitor evaluations, focused on the following areas and other global industry themes throughout 2024.

UK Labour Government

As revealed in the King's Speech this week, the new Labour Government plans substantial investments and changes to the UK energy sector to drive growth and development.  As the Labour government progresses with key initiatives, Pimlico will monitor updates around industrial strategy, investment in green infrastructure, reforms to digital infrastructure regulations, and artificial intelligence frameworks.

Key Initiatives to Watch:

• National Wealth Fund: A £7.3bn injection into the National Wealth Fund aims to decarbonise heavy industries such as steel, ports, and the automotive sector. The fund will be placed on a permanent statutory footing and initially managed through the UK Infrastructure Bank, aligning closely with the British Business Bank.
  

• Planning Reform: The Planning and Infrastructure Bill is central to Labour’s ambitions to expedite housing development and renewable energy projects. This includes reforming local planning committees to streamline approval processes, enhancing the capacity of planning authorities, and boosting confidence among developers and investors.

• Great British Energy: The creation of a publicly-owned energy production company, Great British Energy, will spearhead clean power projects such as solar and wind. With an investment of £8.3bn over five years, this initiative aims to collaborate with the private sector, focusing on energy production that is sustainable and publicly accountable.

• Skills Training: The Skills England Bill will establish Skills England, a new quango responsible for overseeing skills training. This body will take over functions from the Institute for Apprenticeships and Technical Education, aiming to address skills shortages and enhance vocational training, especially to strengthen housing construction and net-zero labour markets.

• EU Relations:  Prime Minister Keir Starmer has also pledged to reset Britain's ties with European countries, using the European Political Community summit to renew trust and friendship with over 40 other countries. strengthening collaboration on energy security and migration challenges.

EU Parliament and Economic Agenda

With the election of Ursula von der Leyen to a second term as EU president this week, the continued progress on the EU’s strategic agenda for 2024-2029 will be closely monitored. Here, a range of key measures crucial for business investment and confidence in climate infrastructure, digital transformation and artificial intelligence (AI), and labour market reforms aims to maintain EU competitiveness whilst reducing bureaucratic burdens.

Key Initiatives to Watch:

• Green Deal: The EU's Green Deal aims to make Europe the first climate-neutral continent by 2050, and the incoming leadership in the Parliament and the EU Commission have reaffirmed their commitment to the programme. This includes policies to reduce greenhouse gas emissions through the Emissions Trading Scheme reform, the Renewable Energy Directive, and the Carbon Border Adjustment Mechanism.

• AI Act: The AI Act, overseen by an AI Office currently being devised in Brussels, will seek to ensure that artificial intelligence systems used in the EU are safe, ethical, and respect fundamental rights. Its requirements for high-risk AI systems, including transparency, accountability, and human oversight, raise important questions for businesses looking to deploy AI-enabled systems in the EU market.

• Digital Markets Act: The DMA, which took effect earlier this year, will continue to erode the dominance of large digital platforms, thereby aiming to ensure fair competition and protect consumers. It has introduced new rules for "gatekeepers"— large companies that control access to digital markets — aiming to prevent anti-competitive practices and promote a more diverse digital economy.

• Corporate Sustainability Reporting Directive (CSRD): The CSRD is a watershed set of sustainability reporting requirements, compelling companies to disclose their environmental and social impacts more than ever before, and imposing fines and other penalties for non-compliance. Despite the backlash against ESG globally, sustainability reporting will continue to increase as institutions drive corporate responsibility and align business practices with global climate ambitions.

US Political Economy Outlook:

In the USA, the 2024 elections are set to reshape the political landscape and influence technology regulation, trade policies, and sustainability measures. However, there remains significant uncertainty around what outcomes and implications the elections in November will have for global business, security, trade and alliances.

Key Areas to Watch:

• Federal Government: The outcome of the 2024 Presidential and Congressional elections will significantly impact national technology, trade, and sustainability policies and agendas. Shifts in Congress could also lead to new data privacy laws, stricter antitrust regulations for tech companies, and increased incentives for renewable energy investments.

• State Legislatures: State-level elections are crucial for shaping the regulatory landscape. States often pioneer new policies in AI regulation (as seen in California), renewable energy (as has occurred with a range of state-level net zero targets), and digital innovation. Changes in state legislatures often influence local regulations, subsidies for green technology, and support for digital infrastructure.

• Inflation Reduction Act: As a signature legislative move of the Biden Administration, the Inflation Reduction Act has sought to tackle inflation through investments in energy production and innovation. This has allocated significant funding for renewable energy projects, provides tax incentives for clean energy technologies, and supports carbon emission reduction initiatives. This act is poised to drive significant shifts in various industries, pushing companies to adopt sustainable practices and invest in energy-efficient technologies to capitalise on available incentives.

• Foreign Policy: Changes in US foreign policy will affect trade and international relations, especially regarding energy security and sustainability. The next administration’s emphasis on strengthening alliances and promoting democratic values will be crucial for shaping the next wave of global trade dynamics and investment flows.

Pimlico’s horizon scanning and market intelligence services are designed to equip businesses with the insights needed to devise strategies for evolving political and economic landscapes.

Leveraging our experience across global markets, Pimlico helps deliver impactful insights at the C-suite level to position company leadership teams to navigate risk and capitalise on emerging opportunities.

Contact the Pimlico team today about our bespoke Market Intelligence services.