How Will Local Politics and Decision-Making Change in 2026 and What Do Companies Need to Think About to Build Baby Build?

This essay is part of our New Year's series on what to expect in 2026 and can be downloaded as one compiled PDF via the download form. Thank you!

By Cameron Scott, Partner and Head of Built Environment at 5654 & Company

Elections will take place in all parts of Britain next May. They will have a major impact on the changing shape of our politics. Opinion polls and real elections this year have demonstrated there is a transformation happening. Support is flowing away from the two main parties at Westminster, with parties on both the right and left seeing their support surge.

Reform UK won control of ten councils this year and two devolved Mayors. And they have been successful in driving debate on many issues despite only having five MPs. If polling trends continue, in May next year Reform UK will take control of even more. This, alongside the growth of devolution and the reorganisation of local government in currently two-tier areas, means there will be generational change in the shape of local and regional government in the next few years.

This change presents opportunities to build relationships and support from a new generation of local leaders, which can be hugely beneficial for business. But it is also important to recognise the risks, particularly where businesses are making major investments buoyed by the Labour Government’s agenda to unlock barriers to growth - like our painfully stretched planning system.

There is always a tension between the bigger economic picture and the impact that growth has on local communities. On the one hand the creation of new jobs and business opportunities, and new homes in a housing crisis, is often welcomed. But if these come at the expense of much cherished green spaces or concerns about the impact on existing local infrastructure, this can be a challenge. There is nothing particularly new in this. But in a context where local government will increasingly be controlled by parties who have fundamental objections or can see a political advantage in being a blocker to development, they will increasingly be at odds with the growth agenda of the Labour Government.

Businesses, particularly in the planning and development space, need to be aware of this and their public affairs strategies must increasingly adapt to it.

Labour’s planning reforms such as the introduction of the ‘grey belt’ land designation, have presented opportunities for businesses to be bolder in the developments they pursue. With local government reorganisation (LGR) and the streamlined local plan system making processes being introduced by the Government, in some areas this is giving NIMBY councils who oppose the development agenda a short-term excuse to delay and block even further.

That’s why smart businesses are recognising they need to think beyond their local ‘planning communications’ campaigns for major projects. They are thinking about their relationships into Government. Where they can, they are briefing ministers, officials and advisers early, sometimes through supportive Labour MPs in their area (where they have them) to ensure the value of their projects are understood by the Government in the context of the economic growth agenda.

This is helping to provide confidence to businesses that even if they aren’t able to win round blocker councils - ultimately they can prime Government to intervene where there are compelling reasons to do so for the sake of economic growth.