7 May 2026 Election Briefing

Executive summary

• Labour lost 1,496 local council seats, Conservatives 563, while Reform gained 1,451 and Greens 441. In Wales, Plaid Cymru became the largest party with 43 seats, 6 short of a majority; Labour slipped to fourth, ending a near century dominance of Welsh politics. The SNP extended their lead in the Scottish Parliament but fell 7 short of majority control.
• Strongest rejection of Labour came outside of London (holding only 28% of contestable seats vs 59% in London), where voters are deeply pessimistic about their economic future. Key demographics such as Brexit voting seats, those in lower paid jobs, and under 35s – those struggling most economically – were most likely to turn to alternative parties.
• Driven by a sustained perception that the economy will not improve, and unable to name a single government intervention on the cost of living, voters are increasingly looking to alternatives to established parties.
• So can business position themselves effectively with Government following these local elections?

Analysis

Global trends are showing the rise in populist parties, and the local elections in May across the UK were no exception. At CT Group we undertake regular research to understand voters’ motivations and our most recent research found the public deeply pessimistic about their future ahead of the elections on 7 May. The results saw significant increases in support for Reform UK and the Green Party, who gained 1,451 and 441 seats respectively. By huge margins, voters believe the country is going in the wrong direction, with deep pessimism about the potential for improvements in the UK’s economic future. So, it was no surprise to see that play out at the ballot box with a firm rejection of established parties whom voters hold responsible for a consistent lack of delivery.

While Labour saw major setbacks across the country, the results were far more severe outside of Greater London than in it. Outside the capital, Labour held just 28% of contestable local council seats. Across London, it held 59%. Overlay these results with trends we have seen in our research and the divide is stark.

In July 2024, at the time of the general election, voters’ views on the economy and their personal finances were aligned across the country. Two years after the General Election, while Londoners have remained positive, outside of London voters’ outlook for the economy and their personal finances have dropped significantly and are now almost as bleak as at the time of the infamous Truss mini-budget. The strongest rejections of Labour at the ballot box came from the demographics struggling most economically: left-behind Brexit-voting towns, those in lower-paid jobs, and the under-35s.

Turnout in local elections is never as high as at General Elections, but voters do use local elections to send a message. These results make it clear that the Government’s agenda isn’t cutting through. In our most recent focus groups, voters were unable to name any specific interventions taken by this Government to tackle the cost of living since taking office.

But the Prime Minister isn’t the only Labour figure facing a challenging future. Reform UK returned 18 councillors out of a possible 19 in Tameside, home to potential leadership hopeful Angela Rayner MP. Even in the capital, the Green Party made gains in Lewisham and Greenwich – both represented by senior Ministers in the Government. The gains made by Reform UK, both in terms of the scale of their vote and the spread across the country, means that they now have the political infrastructure to convert this support into significant gains at the next General Election.

To regain political momentum, the Government must not only show it has a plan on the cost of living, voters must also feel the difference in their lives.

In focus groups, voters describe a clear squeeze. Food, fuel and bills keep rising rapidly while wages have stagnated, leaving little room for the discretionary spending that used to feel normal. Voters have made the obvious cuts, but the pressure continues to grow, driving the concern voters feel about their future.

The Government cannot improve the cost of living without growth. And they cannot achieve it without creating a vibrant business environment.  There is still three years to go until the next General Election, so regardless of potential leadership changes, business must continue to put forward a robust case for economic growth. More importantly, there is an opportunity for business to position itself as a trusted and supportive voice to voters and government alike. CT Group research shows that voters outside the capital now actively do not trust the UK Government (NET -31, ‘trust’ – ‘distrust’), their local councils (-11) or the media (-27) to act in the public interest. Businesses need to position themselves as engines of growth, particularly outside London, and set out an agenda that helps deliver jobs and tackles the cost of living.

This fractured vote means that business can no longer rely on engaging Labour and Conservatives alone. Wider political engagement is essential: building coalitions of support across the political divide – among parliamentarians, candidates, community groups and voters. CT Group helps clients cut through the noise to do exactly this. Aligning your business or organisations’ goals with voters’ concerns will help gain traction with Government.