What a Labour by-election loss tells brands about the real cost of green commitments

A big political upset in the UK brings this issue into sharp focus. Last week the Labour Party lost a by-election in the outskirts of London that most commentators assumed they would win.

The voters in Uxbridge gave the Conservatives a narrow victory. It was a shock not only because this was the former constituency of Boris Johnson - the ex-prime minister who was forced out in the wake of the Partygate scandal - but also because the governing party is in the political doldrums.

But voters were prepared to overlook this for one reason. They did not like a policy that is being pursued by the Labour mayor of London, Sadiq Khan. Called ULEZ, it means that anyone with an older car will have to pay £12.50 a day to drive it in London.

Many who need help to afford a newer model or pay the charge will be forced from London. It is seen as a wake-up call that voters may like green policies in theory but will revolt when there is a steep cost.

The shock has now forced both the Labour Party and the Conservatives to review their green commitments, concerned that they could cost them the next election.

But a chill wind of Green cynicism is sweeping across Europe... Holland has seen political upset caused by agricultural reforms and in Germany, a proposed ban on domestic gas boilers has seen a rising backlash, costing the coalition government of Olaf Scholz significant support. And the storm is heading for the US as Americans start to understand the full impact of new Green policies such as a switch to electric cars – the cost to consumers will almost certainly be a battle line in the next presidential elections.

So what can brands take from all this? A key insight must be that there is no longer consensus on how to save the planet. Once, brands simply had to sign up to vague green manifestos to win universal applause. Now, they run the risk of being sucked into an increasingly intense culture war. On the one hand, they may be condemned for wokery and on another for greenwashing.

In this environment, brands must enter the arena with their eyes open and have a clear idea of what their objective is. Being nice simply will not cut it in today’s world. Ideally, any policy should have a direct bearing on their business. That way, they will at least know to take a position – and if they do come under fire, they will be fighting the right battle.

Coutts is in the news for perhaps fighting the wrong battle at the moment. You’d have thought a bank would want to talk about finance, so how on earth did it get embroiled in a high-profile debate around freedom of speech after it de-banked politician Nigel Farage for, he claims, having the wrong views?

On the other side is Redrow Homes. Its chief executive, Steve Morgan, controversially attacked the UK government for planning policies that he said were anti-housebuilding.

Now that is a battle worth fighting for the firm. Another key lesson from politics is that, particularly amid a cost of living crisis, price still trumps purpose.

All things being equal, then yes, purpose can tilt the scales in favor of a brand. But there is a reason discount retailers Aldi and Lidl are the fastest-growing supermarkets in the UK. And it’s the same reason the Tories won in Uxbridge.