This year’s Conservative Party Conference felt busier and more upbeat than last year, with the party presenting itself as a more settled and united opposition. The central message was one of rebuilding after acknowledging mistakes in government, alongside a renewed focus on membership, campaigning and election readiness. Kemi Badenoch appeared to have strengthened her position, using her speech to set out a clearer Conservative offer, draw contrasts with Labour and Reform, and rule out any deal or coalition with Reform to ‘unite the right’.

For members, the clearest signals were a renewed Conservative focus on business-led growth, regulatory competitiveness and mobilising more domestic capital.

The party is seeking to re-establish its economic credibility around growth, a smaller state (back to pre 2016 levels), lower taxes and increased housing supply. New announcements included abolishing Inheritance Tax on family homes, raising the individual threshold to £500,000, and reducing employer National Insurance contributions for young people. Net zero was frequently discussed in sceptical terms and was often presented as a constraint on growth rather than an economic opportunity.

The conference also reflected a stronger focus on party organisation. The Conservatives are strengthening their campaigning operation and have begun selecting candidates for the next general election. There was a visible effort to rebuild the membership base and involve younger members, including through the return of Young Conservative elections. Recent local election gains in London and the Aberdeen South by-election were cited as early signs of recovery.

Business Day, chaired by Lord Johnson, was firmly pro-business and growth-oriented. Andrew Griffith was particularly prominent and consistent, signalling priorities that are likely to shape the party’s developing economic offer.

His key themes were:    

• creating the conditions for businesses to drive growth;
• simplifying the tax system and strengthening fiscal discipline; making the UK more attractive to inward investment;
• addressing the “de-equitisation” of the UK and encouraging greater investment in equities; and
• repealing most of the Employment Rights Bill while retaining key family leave provisions.

For insurers and long-term savings providers, this agenda could create opportunities to demonstrate how the sector supports growth through investment, employment and household resilience. Members may also want to monitor whether commitments to a smaller state and lower taxes translate into specific proposals affecting taxation, public-private partnerships or the delivery of infrastructure and housing.

Members should expect continued political interest in where institutional capital is invested and how firms demonstrate their contribution to UK growth. The ABI will continue to keep making the case for policy and regulatory conditions that support investment in productive assets while recognising firms’ fiduciary duties, risk management requirements and the need for suitable investment opportunities.

There was strong recognition of the contribution financial services and insurance make to economic growth, investment and resilience.

Andrew Griffith’s focus on regulatory culture, risk appetite and UK competitiveness suggests he may take a more direct role in financial services policy, revisiting themes from his time as Economic Secretary to the Treasury. As part of the commitment to reduce bureaucracy he committed to abolishing the Environment Agency and Natural England, moving their functions back to Whitehall. The ABI will continue to engage early as the Conservatives develop their economic and financial services offer, particularly on UK competitiveness, regulatory culture, risk appetite and domestic investment.

The allocation of institutional capital to UK assets remained a recurring concern, including a discussion of the Parliamentary pension scheme’s exposure to the UK at Business Day. This reflected a wider conference-season debate about how to increase domestic investment, which we expect to remain a recurring issue. Engagement during the conference also highlighted the continuing need to build understanding of insurance-specific mechanisms and policy priorities, including the distinct roles of Flood Re and Pool Re.

Recently reported concerns about AI were apparent at the Conference. On a panel with Mark Garnier and Harriett Baldwin, the discussion focused on issues around on governance, accountability and consumer protection, rather than on accelerating AI adoption.

One of the central questions was where responsibility should sit when consumers use AI-enabled tools or guidance to move money or make investments without fully understanding the risks or potential losses. The discussion underlined the importance of clear responsibility for consumer outcomes as AI use expands across financial services. As the ABI continues its work in this area, we will engage with both the regulators and the political parties.