Industry calls for stability amid Government turmoil

Boris 2The advertising and marketing industry has joined other sectors in demanding the Government shows strong leadership in the wake of Prime Minister Boris Johnson’s resignation, amid fears that the many new laws, including the Data Reform Bill, are now facing an uncertain future.

The political crisis which has engulfed the Conservative Party – and Westminster – has led to 59 members of the Government quitting their roles, including Minister for Media, Data & Digital Julia Lopez MP, who only outlined the Data Reform Bill three weeks ago.

Her boss, Culture Secretary Nadine Dorries, is one of the few ministers who is still in place but with a major reshuffle on the cards that could soon change, too.

This could also delay the controversial sell-off of Channel 4, which appears to be Dorries’ – and Johnson’s – pet project.

With claims the Government is now “crippled” due to so many ministerial roles being left vacant, there is huge uncertainty about the Government’s wider legislative programme, which also includes the Online Harms Bill and the Gambling Review.

In addition, a timeline for the Data Reform Bill, which includes bigger fines for rogue marketers, a soft-opt in for charity emails, relaxing the online cookies law and a shake-up of the Information Commissioner’s Office, has yet to be revealed.

IPA director general Paul Bainsfair commented: “Having welcomed 10 culture secretaries over the past 10 years, our industry urgently requires stability too in order to be able to fully engage with the evidence on the topics that matter to business and society.”

He also questioned what would happen to the planned privatisation of Channel 4.

Advertising Association chief executive Stephen Woodford said: “To best support the UK’s recovery from the pandemic and to help deal effectively with the issues we all face such as the cost-of-living crisis, the Advertising Association urges the Government, in this transition period to a new administration, to deliver clear, consistent leadership with properly informed, evidence-based policy decisions that support jobs and sustainable growth.

“Advertising brings a positive economic and social contribution, particularly worth appreciating in its role in supporting businesses and jobs during difficult economic times.

“With every £1 spent on advertising generating £6 of GDP and adspend reaching record levels of £32bn last year, it is a key element of competition and growth. Along with exports exceeding £11bn in 2020, it makes a major contribution to the UK’s success and prosperity and we will ensure that is fully recognised by the new leadership team.”

Woodford’s call has been echoed by other business leaders. Richard Burge, chief executive of the London Chamber of Commerce & Industry tweeted: “I believe it is wrong for Boris Johnson to continue as interim PM. He has shown no contrition about his behaviour and judgement, and cannot (or will not) change his character. Both are damaging to our international trading reputation, and to London as the world’s greatest city.”

Institute of Directors chief economist Kitty Ussher added: “What business hates most is uncertainty and instability, which heightens the sense of external risk. Having said that, we recognise that this is an issue for the Conservative Party to resolve.”

Meanwhile, Asda chairman Lord Rose, the former boss of Marks & Spencer and a Conservative peer, said: “This has been too long in happening and it is unsustainable to continue with a hamstrung, lame duck prime minister into the autumn.”

And CBI director general Tony Danker said: “We now need the political vacuum to be filled at speed to protect people’s living standards, through action on business confidence, investment and growth. Getting the economy growing again has got to be the number one focus for all politicians.”

The Federation of Small Businesses, which has been highly critical of Government plans to get firms to slash prices to ease the cost of living crisis, has also waded in.

External affairs chief Craig Beaumont told the Financial Times: “We have had no solutions to the problems facing businesses and now the worry is there will be a further delay.”

Bainsfair concluded: “We need a Government that fully acknowledges the value of advertising to the economy and, rather pressingly, that heeds our evidence that diverting marketing budgets to hold down prices artificially at a time of inflationary supply-side costs and weakening consumer demand would at best result in short-term switching between promoted products at the cost of damaging the long-term growth of brands, businesses and the economy as a whole.”

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