Leading the Way: Policy Review Contents Foreword 2 About the Policy Review 6 1 The challenges we face 7 1.1 The economy 11 1.2 Public services 13 1.3 Global challenges 16 2 A brighter future 17 2.1 Our vision 17 2.2 Our values and approach 18 3 The Liberal Democrat response 21 3.1 The economy 21 3.2 Public services 24 3.3 Democracy 27 3.4 Rights and equality 28 3.5 Immigration 30 3.6 Community 32 3.7 Environment 35 3.8 Global instability 37 4 Conclusion 40 ________________ Foreword People are fed up – and it’s easy to see why. After years of Conservative chaos and neglect, so many things in our country are broken. The economy is in crisis, leaving families and pensioners struggling with sky-high energy bills, food prices and housing costs. The NHS is on its knees, with people waiting hours for an ambulance, weeks to see a GP or months for urgent cancer treatment. Water companies are getting away with pumping filthy sewage into our rivers and lakes and onto our beaches. The list goes on. It feels like nothing is working the way it should. Now Labour is letting people down badly by failing to deliver the change they promised. Their government so far has been littered with incompetence, timidity and bad decisions. One of their first actions was to take winter fuel payments away from millions of struggling pensioners, before being forced into a U-turn. They put up bus fares, announced an unfair family farm tax, and raised national insurance contributions – hitting small businesses, GPs, care homes and many other employers hard. Meanwhile, Labour have not shown anywhere near the ambition and urgency this moment demands – to get our economy growing, bring down the cost of living, fix the NHS and other public services, or end the sewage scandal. Given the failures of both Conservative and Labour governments, it’s little wonder that people’s faith in politics is at an all-time low. Many people just don’t believe that any government of any party can really make their lives better. And beyond our shores, they see a world rife with conflict and instability, making it even harder to see our domestic challenges being solved. All this disillusionment is fuelling the rise of right-wing populists – not just Nigel Farage and Reform here in the United Kingdom, but also Donald Trump in the United States, the AfD in Germany, the RN in France, the FdI in Italy, the FPÖ in Austria, and many more across Europe and beyond. We know how dangerous Reform’s brand of divisive, destructive politics is. From his hatred of the NHS to his love of Trump and Putin, Farage clearly does not share our fundamental British values. With the Conservatives chasing Reform’s tail, and Labour sounding more and more like them every day, it falls to the Liberal Democrats to take them on. We are the only party with the courage and conviction to offer a compelling, positive alternative to the snake oil peddled by Farage and Reform. In 2024, millions of people put their trust in us, many of them for the first time. By electing 72 Liberal Democrat MPs – the biggest liberal party in the House of Commons in over 100 years – voters handed us an exciting opportunity and a humbling responsibility. To repay that trust, we are doing what we told people we would do: focusing on their priorities. Getting our economy back on track and getting the cost of living under control; ending the sewage scandal and protecting our precious environment; and above all, fixing the NHS and care crisis. That was the clear message of hope we campaigned on in the general election, and it is our clear mandate now. We are providing the responsible opposition that any government needs – an essential role in our democracy, and one that today’s Conservative Party clearly cannot fulfil. They are simply too weak, too shambolic, and too out of touch with the lives of ordinary people. We are taking a better, more constructive approach to opposition: telling ministers directly about the real problems people are facing and championing practical, hopeful solutions. We are holding Labour to account and challenging them to act faster and be much bolder, on everything from the NHS and care to Europe and political reform. As we do so, we won’t let the Conservative Party off the hook either, after all the chaos and misery they’ve caused. The Liberal Democrats’ purpose in British politics, however, is much greater than just vanquishing what’s left of the Conservative Party and being the careful scrutineers of Labour’s actions – crucial though those jobs are. Our purpose is as it has always been, as it is spelt out in our party’s constitution: to build and safeguard a fair, free and open society, in which we seek to balance the fundamental values of liberty, equality and community, and in which no one shall be enslaved by poverty, ignorance or conformity. That goal may seem a long way off right now, but Britain has overcome big challenges before and we can do it again now. For more than 150 years, Liberals and Liberal Democrats have led the way: championing free trade, introducing the state pension and free school meals, laying the foundations of the welfare state and the NHS, legalising same-sex marriage, and taking urgent action to tackle climate change. So now we must continue to lead the way, with big, bold policies to tackle the challenges facing our country in the years ahead. Not just clearing up the enormous mess left by the Conservatives, but building the fair, free and open society we all believe in. Doing what liberalism is all about: putting real power in people’s hands and holding the already powerful properly to account. That is how we can deliver for our communities, turn back the tide of populism, and change people’s lives for the better. By showing people that their voices count, their votes matter, and liberal democracy can work for them. Ed Davey Leader of the Liberal Democrats and Chair of the Policy Review ________________ About the Policy Review This policy review was established by Ed Davey and the Federal Policy Committee following the 2024 General Election, to develop a strategic, focussed and ambitious programme for renewing our policy in the years ahead. A working group of parliamentarians, councillors, activists and policy experts has spent the past year listening to members, gathering evidence and discussing the big challenges facing the United Kingdom and the wider world, reviewing our existing policies, and developing proposals for where our policy development should focus next. The working group ran a major programme of engaging with Liberal Democrat members and supporters. It began with a lively and wide-ranging consultation session in the main auditorium at Autumn Conference 2024 in Brighton, and continued with consultation sessions at regional conferences across England, dialogue with state parties and affiliated organisations, a consultation paper published in February 2025, a further consultation session at Spring Conference 2025 in Harrogate, and online surveys for all members and supporters. We are immensely grateful to everyone who has participated in our consultation sessions, responded to our surveys, contributed thoughts and suggestions, and given evidence to the review. ________________ 1 The challenges we face 1.0.1 Despite all the turmoil of recent years, the many great strengths of our United Kingdom still endure. 1.0.2 People from all backgrounds and all walks of life are working hard, raising families, helping others and playing by the rules. The wonderful people working in our National Health Service embody our country’s proud commitment to universal healthcare free at the point of use. 1.0.3 From the steam train to the internet, Britain has always led the world with ingenuity and innovation – and we are still doing so today. Our world-leading financial and business services sectors make us a trade superpower: the UK exports more than £500 billion in services a year, more than any other country except the United States. 1.0.4 Many of our universities are among the best on the planet, supporting cutting-edge research in everything from life sciences to space travel. The UK is a world leader in the creative industries, and home to the third largest market in artificial intelligence, after only the US and China. 1.0.5 The stunning British countryside is stewarded by farmers who uphold the highest standards of animal welfare, environmental protection and food safety. Britain’s many incredible artistic, literary and sporting achievements are a source of immense pride and global acclaim, and our rich and vibrant cultural heritage is a national treasure. 1.0.6 The UK also has significant soft power and an important role to play on the world stage – as a member of the G7, the Commonwealth and the Council of Europe, a permanent member of the UN Security Council, a nuclear power, the third biggest contributor to NATO, and a prominent voice in many other international organisations. 1.0.7 We are a nation that believes in tolerance, decency, and respect for both individual freedom and the rule of law. British attitudes have become more socially liberal over time, and we are among the most socially liberal countries in the world. 1.0.8 However, after years of Conservative neglect and a deeply disappointing start by the Labour Government, there is no doubt that our country faces enormous challenges on a number of fronts. 1.0.9 People’s living standards have suffered from anaemic economic growth. Productivity isn’t rising, business confidence is very low, and trade has been hit by the Conservatives’ botched Brexit deal. Families and pensioners are facing a cost of living crisis, fuelled by sky-high energy bills. 1.0.10 Poverty is far too high and rising, and the number of people out of work due to long-term sickness has soared. Government housebuilding targets are regularly missed, the shortage of affordable and social housing is at crisis point, and many homes are damp, cold and expensive to heat. 1.0.11 Too many people’s lives are blighted by prejudice, discrimination and entrenched inequalities – including women, LGBT+ people, people of ethnic and religious minorities, and disabled people. For example, Black and Asian children are significantly more likely to grow up in persistent poverty than white children. 1.0.12 In so many ways, public services aren’t working the way they should. Nowhere is that clearer than the NHS and social care, which the Conservative Government plunged into crisis – failing to deliver the new hospitals they promised, making people wait hours for an ambulance, weeks to see a GP or months for urgent cancer treatment, and leaving millions of people without the professional care they need. 1.0.13 Serious violence is destroying too many young lives. Our communities are plagued by burglaries, fraud and anti-social behaviour, and far too many criminals are evading justice and going on to reoffend. Violence against women and girls remains horrifically high. Huge backlogs in the courts are denying victims the justice they deserve. Black people are overrepresented throughout the criminal justice system. Prisons are in crisis: overcrowded, understaffed and failing to rehabilitate offenders. 1.0.14 Our immigration system is badly broken. Damaging new rules mean British employers can’t recruit the people they need and families are separated by unfair, complex visa requirements. More than 100,000 people are trapped in the Home Office’s asylum backlog. Public confidence in the system is shattered. The Conservative Government closed down safe and legal routes to sanctuary, leaving desperate people to make perilous attempts to cross the Channel in small boats, often in the hands of criminal smugglers and traffickers. 1.0.15 In rural areas, communities are being let down by a lack of access to local public services, decent public transport, affordable housing, adequate broadband connectivity, or protection from crime. Farmers are struggling in the face of rising costs, squeezed incomes, unfair international trade deals, the family farm tax, and the botched transition away from the Basic Payment Scheme. They have been failed by a Conservative Government that took rural communities for granted and a Labour Government that clearly doesn’t understand them. 1.0.16 We are facing twin climate and nature crises. Soaring temperatures leading to wildfires, floods, droughts and rising sea levels around the world are affecting millions of people directly, and billions more through falling food production and rising prices. Despite progress on reducing emissions, the UK is not on track to meet its climate targets. One in six species are threatened with extinction from Britain. Air pollution claims tens of thousands of lives every year and costs the NHS billions. Water companies are getting away with pumping filthy sewage into our rivers and lakes and onto our beaches. 1.0.17 Underpinning all these challenges is a political system that has been fundamentally broken for generations. It leaves millions feeling powerless and excluded, makes it impossible for people to hold those in power properly to account, and rewards short-term self-interest at the expense of actual solutions. 1.0.18 The UK’s challenges are made harder by strong global headwinds. Distant events can have significant repercussions for us at home. Global instability and conflict, climate change, Putin’s Russia, an increasingly ambitious China, the erosion of the international rules-based order, the spread of misinformation online, the rise of cyber attacks and malign use of social media to undermine democracy, Donald Trump’s erratic and unpredictable presidency: all have direct implications for the UK and our interests, and are significant obstacles to fixing domestic problems. 1.1 The economy 1.1.1 People’s quality of life has been damaged by a weak economy. Since 2015, the UK’s Gross Domestic Product has increased at a rate of just 1.2% a year, half the average rate over the previous 60 years – and growth is forecast to stay below 2% for the foreseeable future. Accounting for population growth, the picture is even bleaker: GDP per head actually fell by 0.5% over the course of the last Parliament. 1.1.2 The lack of labour productivity growth in particular is a major concern. In the 30 years before the 2008 financial crisis, output per hour worked increased at a rate of 2.3% a year. Between that crisis and the Covid pandemic, the rate of growth was much slower: just 0.6% a year. Even more alarmingly, since the end of the pandemic productivity has actually fallen – it was lower at the end of 2024 than it was in 2022. The UK’s productivity has lagged further and further behind many other major economies – most notably the United States and Germany. 1.1.3 This lack of growth has held down people’s wages: adjusted for inflation, average earnings are just 2% higher now than they were in early 2008. The Institute for Fiscal Studies has noted that “This lack of growth in real wages is unprecedented in the last two hundred years of British economic history: there has been no longer period without growth in real wages since the Napoleonic Wars.” 1.1.4 Although the overall employment rate is high and unemployment low by historical standards, the number of people economically inactive due to long-term sickness has soared from 2 million before the Covid pandemic to 2.8 million now. 1.1.5 In 2022-23, the Conservative Government oversaw the biggest fall in living standards since records began. Sky-high energy bills and rising rents and mortgage costs are hurting families and businesses, fuelling the cost-of-living crisis – and some parts of society have been hit especially hard. 1.1.6 Despite ever-increasing levels of welfare spending, poverty continues to blight too many lives and communities. 14 million people across the UK are living in poverty, including 31% of all children. A disgraceful and growing number of families are forced to rely on food banks: according to the Government’s own data, 2.8 million people live in households that used a food bank in the last 12 months. 1.1.7 The British economy is also marked by wide regional inequality. Economic activity is too concentrated in London, which in 2023 accounted for 13% of the UK’s population but 23% of our GDP. Average incomes of people living in Westminster, Kensington and Chelsea are more than four times those of people in Bradford, Hull, Leicester, Nottingham and Stoke. 1.1.8 One of the major drags on economic growth has been the failure of successive Governments to build the infrastructure our country needs, whether through public or private investment – and the ongoing housing crisis is the clearest example. Government housebuilding targets are regularly missed, leaving a huge shortage of affordable and social housing. More and more young people are shut out of buying or renting their own home, with increasing numbers living with their parents into their mid- to late-twenties. Homelessness remains shamefully high. 1.1.9 Similarly, the electricity grid is dangerously out-of-date, and the UK energy system is too reliant on fossil fuels imported from overseas. Investment in skills – by both government and businesses – has fallen. Under the Conservatives, the number of people starting an apprenticeship fell by a third between 2015-16 and 2023-24. Employers are providing less workplace training than they used to. The Conservative Government badly broke university funding, pushing many universities into financial crisis and forcing them to cut courses and staff, reducing opportunities for young people and hurting economic growth. Labour has compounded this crisis with its national insurance hike, and risks compounding it further with proposals for a new levy on universities with international students. 1.1.10 Another major drag on growth is, of course, the Conservatives’ botched deal with Europe, which has done enormous damage to British businesses by putting up new barriers to trade and creating reams of red tape. Official forecasts suggest UK trade will be 15% lower and overall economic output 4% lower as a result 1.2 Public services 1.2.1 In so many ways, public services aren’t working the way they should – and the lack of economic growth means money to repair them is extremely tight. The tax burden is at its highest since the Second World War, but of every £11 the Government raises in revenue, more than £1 is spent just paying the interest on the national debt. Yet from the needs of an ageing population to the necessity of investing in our national defence, the demands on the public purse are growing. 1.2.2 Our NHS used to be the envy of the world, but now too many people can’t access the care they need. More than 6 million people are stuck on waiting lists for treatment. Getting an appointment with a GP can take weeks and seeing an NHS dentist is almost impossible. People are no longer confident that when they ring 999 an ambulance will turn up in time. The frontline workers who were rightly applauded are now overworked and burnt out. 1.2.3 NHS productivity is still below what it was before the Covid pandemic, although there has been some recovery. Key drivers of low productivity are long-term underinvestment in workforce, equipment and buildings, and a failure to take advantage of new technologies. 1.2.4 Another major cause of the NHS crisis is the crisis in social care. More than 12,000 people are stuck in hospital because the care they need to leave isn’t in place – equivalent to 13% of all NHS beds. Millions of people are not getting the social care they need. Millions of unpaid carers are looking after loved ones, but they are too often forgotten and ignored. 1.2.5 Public dissatisfaction with the NHS has risen to a record high of 59%, with a record low of 21% satisfied. Dissatisfaction with social care has also risen dramatically since 2019: to 53%, with just 13% satisfied. There are also wide gaps in access to, experience of and outcomes from healthcare. For example, Black and Asian women are more likely to die during or soon after pregnancy than white women, and Black and mixed race people are disproportionately likely to be detained under the Mental Health Act. 1.2.6 Schools are being forced to cut back on staff, school trips and IT equipment to manage rising costs. There is a crisis in teacher recruitment and retention, leaving millions of secondary school pupils to be taught by someone who isn't a specialist teacher in their subject. 18% of children have a probable mental disorder, and 19% are persistently absent from school. 1.2.7 Under the Conservative Government, progress in closing the attainment gap between disadvantaged pupils and their peers stalled, and during the pandemic the gap widened. Gypsy, Roma and Traveller and Black Caribbean children are significantly more likely to be excluded from school than other pupils. 1.2.8 Too many children with special educational needs and disabilities are left to struggle because their needs go undetected for too long and the necessary support isn’t in place. A funding crisis means many parents and carers simply can’t get their children the support they deserve, navigating a postcode lottery and waiting months to get the support their children are entitled to. 1.2.9 The crises in social care, SEND and housing are also putting enormous strain on local council budgets. Over years, the Conservative Government forced councils to do more and more with less and less, plunging many into financial crisis. 1.2.10 Meanwhile, there is far too much waste and poor value for money in public spending – much of it driven in recent years by chaotic decision making and cronyism on the part of the Conservative Government. Numerous scandals and the subsequent public inquiries have also highlighted widespread failures in accountability in public bodies, contributing to very low levels of public trust. 1.2.11 While artificial intelligence has the potential to greatly benefit our public services, our society and economy, without careful regulation it could also severely exacerbate inequality, create large-scale unemployment and undermine our democratic way of life. 1.3 Global challenges 1.3.1 Predicting and prioritising the global challenges we will face is particularly difficult, given the number of potential developments, complex relationships and the limited influence of any single country including the UK. 1.3.2 Rapid geopolitical and technological change – as well as the rise of populism, authoritarianism and powerful political disruptors including Donald Trump – have heightened uncertainties about the future. A shifting international landscape and weakened rules-base order will make it harder to solve global problems such as climate change. Our national security and resilience is threatened by sophisticated external threats from Russia, China and others, and there is a heightened risk of conflict involving nuclear and other banned weapons. 1.3.3 After the turbulence of Brexit, instead of a calmer period to reset relationships we have faced new uncertainties. The rise of populism across Europe, the ambitions of Putin’s Russia and Xi’s China, the unpredictability of Trump’s White House, the actions of other autocrats emboldened by these major powers and continuing instability or conflict in the Middle East, parts of Africa, and South Asia all have a direct impact on the UK and our interests. 1.3.4 We are facing a period of continuing global tension and uncertainty. Few current foreign policy challenges are likely to be fully resolved soon, and even when hostilities end in, for example, Ukraine or Gaza, very significant humanitarian and economic challenges will remain. Other crises that flare up with little notice, such as renewed tensions between India and Pakistan, can carry significant domestic implications. Exploitation of weak governance and failing states by external actors may lead to new or renewed crises and conflict, and increase migration pressures. 2 A brighter future 2.1 Our vision 2.1.1 Things can get better. Britain has overcome big challenges before and we can do it again now. 2.1.2 Over the centuries, Britain has taken enormous strides to becoming the fair, free and open society we all know it can be – and, for more than 150 years, Liberals and Liberal Democrats have led that change. 2.1.3 In the 19th century, Liberals overturned centuries of protectionism to usher in a new era of free trade. In the early 20th century a Liberal government introduced health and unemployment insurance, the state pension, and free school meals for children. In the decades that followed, Liberals helped to expand the welfare state and develop the NHS; fought successfully to legalise abortion, decriminalise homosexuality and end capital punishment; and won the case for more investment in education. 2.1.4 More recently, the Liberal Democrats have delivered vital progress on many different fronts: legalising same-sex marriage and introducing shared parental leave, stopping the fingerprinting of children in schools and ending the detention of children in immigration centres, successfully campaigning for a Human Rights Act and increasing British aid for the world’s most vulnerable people, expanding renewable power and boosting funding for the poorest children at school. 2.1.5 Now, the Liberal Democrats will continue to lead the way towards a fairer society where: * Everyone has the chance to succeed and see their hard work and aspiration properly rewarded, and extremes of inequality are eliminated. * Everyone’s rights are respected, and individuals and communities are properly empowered. * Every child gets a good education and has real opportunities to flourish. * Businesses and entrepreneurs are supported to create growth and jobs in every part of the UK. * Everyone receives the care they need when they are ill or frail, and a helping hand when they fall on tough times. * Everyone can afford to live in a decent home somewhere safe and clean, with a comfortable retirement when the time comes. * Everyone can enjoy the benefits of our wonderful natural environment, and our children inherit the healthy planet they deserve. * The UK stands tall in a safer world, working with our neighbours, allies and partners to champion the values of equality, democracy, human rights and the rule of law. 2.2 Our values and approach 2.2.1 The Liberal Democrat response to the challenges we face will always be rooted in the values we share: freedom, equality, community, internationalism, human rights, environmentalism and democracy. Our mission is set out powerfully in the opening lines of our constitution: “The Liberal Democrats exist to build and safeguard a fair, free and open society, in which we seek to balance the fundamental values of liberty, equality and community, and in which no-one shall be enslaved by poverty, ignorance or conformity.” 2.2.2 As Liberals, we always start with people. We believe in the intrinsic value of every human being, and we are deeply optimistic about people. We believe that our role – and the role of government – is to ensure they have the power and freedom to thrive and fulfil their potential. 2.2.3 Unlike Labour, we don’t think the state always knows best what people need. We know the way to build that fair, free and open society is to empower individuals, businesses and communities to make their own choices – not to subjugate them to the power of the state, or powerful vested interests. 2.2.4 Unlike the Conservative Party and Reform, we understand that empowering people and enlarging individual freedom requires an active and effective state. And unlike all of them, we are instinctively suspicious of concentrations of power, and believe that powerful individuals and organisations – whether in government or outside of it – must be properly held to account. 2.2.5 In the face of so many crises and such big challenges, we are impatient for change and clear-eyed about the scale of reform that is needed. We see the damage done by narrow, short-term decision-making that has often been chaotic – especially in recent years. We see the failure of policies driven by dogma or expediency, and of siloed thinking and disjointed government. 2.2.6 Our goal is to transform the nature of British politics itself to make it more relevant, engaging and responsive to people’s needs and dreams. We pursue long-term solutions instead of short-term sticking plasters. We base our policies on the strongest available evidence and continually strive to improve that evidence. We will break down conventional silos to develop policies that work together effectively across government to solve problems and deliver the best outcomes for people. ________________ 3 The Liberal Democrat response 3.1 The economy 3.1.1 As Liberals, we believe that everyone deserves the chance to get on in life and see their hard work and aspiration properly rewarded. That means we need to build an economy that is genuinely innovative, dynamic, prosperous and fair. 3.1.2 Liberal Democrats understand that economic growth is not an end in itself, but an essential means to boost people’s living standards, improve their wellbeing, expand opportunity and raise the money we need for crucial public services and defence. We also understand that economic growth must be sustainable, and that everyone should feel the benefits of growth fairly. 3.1.3 The focus of our economic and business policies should therefore be on fostering opportunity and enterprise so that we can boost productivity and make the economy grow for everyone. This would improve living standards and generate the tax revenues to deliver the world-class public services to which we all aspire. 3.1.4 As set out in our constitution, the Liberal Democrats are committed to fostering a strong and sustainable economy which enables people to thrive in their communities, assessing progress by measuring people’s wellbeing. Such an economy will encourage necessary wealth creating processes, develop and use the skills of the people and work to the benefit of all, with a just distribution of the rewards of success. 3.1.5 By making society fairer – tackling entrenched inequalities and discrimination – we can enable people to make the most of their talents: widening opportunities for them while also helping to boost productivity and grow the economy. 3.1.6 In the last Parliament, Conference endorsed new policy papers on economic inequality, housing, and trade and cooperation with Europe. It also passed a detailed motion on industrial strategy. 3.1.7 In our general election manifesto, we set out plans to rebuild the economy by: * Backing small and growing businesses – the engines of our economy and the beating heart of local communities – to create good jobs in every part of the UK. * Fixing the UK’s broken relationship with Europe, tearing down the Conservatives’ damaging barriers to trade with a four-step roadmap towards membership of the Single Market. * Investing in cheap, clean renewable power to drive a strong economic recovery, bring down energy bills and create secure, well-paid new jobs. * Helping more people into work, by getting them off NHS waiting lists, helping them learn the skills they need, and making it easier to juggle work with caring responsibilities. * Managing the public finances responsibly, and giving businesses the certainty and stability they need to invest in our economy. 3.1.8 Since the election, the party has expanded on our plans to rebuild trade with Europe – something made even more urgent by Donald Trump’s imposition of arbitrary, damaging tariffs – with a policy to negotiate a new UK-EU customs union by 2030 at the latest. This is the single biggest thing the Government could do to turbocharge our economy in the medium and long term, and would also unlock big economic benefits now by making it easier to agree reductions in trade barriers with the EU. 3.1.9 In addition, the party has adopted a new policy paper on science, innovation and technology, and a further paper on opportunities and skills is being debated at Autumn Conference 2025. Together, these papers set out a comprehensive plan to tackle the UK’s skills shortage and enable people to train and retrain for the jobs of the future. This includes our proposals for new Lifelong Training Grants, but also measures to support Britain’s universities in the face of extreme financial pressure, such as recognising the benefits that international students bring and reversing the decline in quality-related funding for research. Further policy development will be needed on higher education reform, but we do not believe a full working group is the best way to tackle an urgent but relatively narrow issue. A spokesperson’s paper would be best, after the Government has set out its own plans in the white paper due later this year. 3.1.10 A new working group focusing on town centres and high streets is also underway, with the aim of bringing a policy paper to Spring Conference 2026. It will develop policies to deliver our vision of high streets as a central part of building communities, fostering entrepreneurship, creating opportunity and strengthening local economies. 3.1.11 At the recommendation of the Policy Review working group, the Federal Policy Committee has recently established a new working group on the economy – to further develop our distinctive Liberal Democrat narrative on why the economy has been performing so poorly, how to turn it around, and how to make sure everyone feels the benefits of growth equitably. It has been tasked with developing a policy paper for Autumn Conference 2026. 3.1.12 That paper will necessarily take a high-level view of the economy. We expect that it will highlight particular areas that the party may want to focus on for more detailed policy development beyond 2026. One issue on which we propose a more focused policy paper is support for start-ups and scale-ups, small and growing businesses, entrepreneurs and the self-employed, given how important they are for realising our vision for an innovative, dynamic and prosperous economy. They have been let down and ignored by both Conservative and Labour Governments, and it is crucial that Liberal Democrats continue to champion them. 3.2 Public services 3.2.1 Liberal Democrats believe that an active state is essential to empower people and provide the support they need. 3.2.2 We believe that everyone should receive the care they need when they are ill or frail, and a helping hand when they fall on tough times. A strong NHS – open to all, regardless of wealth, and free at the point of use – gives people the freedom they need to live their lives as they choose. 3.2.3 In the last Parliament, the party focused a lot of attention on developing policies on the NHS, social care and carers – and at the general election, we secured a great deal of support for our policies on these areas in particular. (Public polling found that our policies on cancer treatment, access to GPs, free personal care and a higher Carer’s Minimum Wage were among the most popular policies across all the parties’ manifestos, and were also the main reason people voted for us). 3.2.4 The crisis in primary healthcare is one of the biggest challenges people face. It is bad for patients and bad for the NHS, putting more pressure on ambulances and A&E as more people end up in hospital who shouldn’t have to be there. If we get it right, a well-functioning primary care system can help unlock a healthier life for us all, and a better and more effective NHS. 3.2.5 At the recommendation of the Policy Review working group, the FPC has established a new working group on primary healthcare, to build on our strong focus on GPs, dentists and community pharmacists. A key focus for this group will be on improving early access for patients and helping to shift more healthcare out of hospitals and into communities. It has been tasked with developing a policy paper for Autumn Conference 2026. 3.2.6 In addition, the FPC has established a policy working group on mental health, which will develop new policies to improve early access to diagnosis and treatment, especially for children and young people, put mental and physical health on an equal footing, tackle the stigma associated with mental ill health, and address its underlying causes. Its paper is due to be debated at Spring Conference 2026. 3.2.7 Beyond 2026, the party may wish to follow those two groups with a further working group to take a strategic look at health and care more broadly. This should develop the case for investing smartly in prevention, early access and care to both improve outcomes for people and save taxpayers’ money elsewhere. It could include a focus on preventing and treating non-communicable diseases such as cancer, diabetes and cardiovascular disease, which account for eight out of every nine deaths in the UK. 3.2.8 Liberal Democrats also believe that every child deserves the best possible start in life and the opportunity to flourish, no matter their background or personal circumstances. We recognise education as the best possible investment in our country’s future. We believe that the best way to protect children’s rights and wellbeing is to support families in all their shapes and sizes, including giving parents the support and flexibility to juggle work with parenting as they see fit. 3.2.9 In the last Parliament, the party developed new policies on childcare and the early years, including bold proposals to overhaul parental leave to give parents a genuine choice over how to manage things in the first months of their child’s life. It also passed a detailed policy motion on schools, addressing everything from crumbling buildings to teacher recruitment and retention to free school meals to extra-curricular activities. Since the general election, Conference has passed further motions on improving care and support during pregnancy and the neonatal period, support for children with special educational needs and disabilities, and tackling child poverty by abolishing the two-child benefits limit. 3.2.10 So, while families, children and schools are rightly a priority for the Liberal Democrats, this area is very well covered by existing policies and we do not believe it needs to be the focus of a specific new working group now. 3.2.11 Liberal Democrats believe that everyone deserves to feel safe in their own homes and communities. We see the police, courts and rehabilitation as essential to prevent crime and build communities where people can truly feel safe. In the last Parliament, Conference passed a number of new motions on crime, justice and policing, including policies to boost community policing, tackle court backlogs and the prison crisis, combat fraud and scams, and end violence against women and girls – all of which were reflected in our manifesto for the general election. 3.2.12 To build on these further, we recommend a working group on victims of crime to look at policing, the justice system and other public services from a victims’ perspective. Victims of crime have been let down for too long. Many wait hours for a police response; many never see their crime investigated or the perpetrator charged; many wait years for the trial, prolonging the trauma. This group could develop a useful and distinctive approach that cuts across traditional policy silos. 3.2.13 More generally, we have heard how people often feel powerless in the face of not only public services, but also utility companies, arms-length government bodies and many large businesses. They don’t feel able to hold them to account, and too often don’t see anyone else doing it effectively on their behalf. We therefore propose a cross-cutting, thematic working group on empowering consumers that should aim to develop concrete policies to deliver on our Liberal promise to put real power in people’s hands and hold the already powerful properly to account. 3.3 Democracy 3.3.1 After years of Conservative chaos and scandal, and months of Labour failure and inaction, public trust in politics is lower than ever – and we have seen how populists and authoritarians in the UK and around the world seek to exploit that lack of trust and new media to undermine our fundamental liberal democratic principles. 3.3.2 Liberal Democrats should now take the lead on defending Britain’s liberal democracy: to transform our broken political system, restore trust, and put meaningful power in people’s hands. 3.3.3 For a hundred years, Liberals and Liberal Democrats have been fighting for fair votes, to give everyone equal power in our democracy and hold all Members of Parliament properly to account. We want to shift more power out of the centre in Whitehall, so local decisions are made by and for the people and communities they affect. We want to break up concentrations of power, hand more power to ordinary people, and hold the already powerful properly to account. 3.3.4 In the last Parliament, Conference endorsed a policy paper entitled ‘Democracy and Public Debate’, which focused in particular on the role of social media and the internet more broadly on our democracy. It also passed two detailed motions on our proposals for a federal United Kingdom, as well as one on restoring standards in public life and another reiterating our party’s longstanding commitment to electoral reform with proportional representation. 3.3.5 At the recommendation of the Policy Review working group, the FPC has established a new working group on defending and strengthening British democracy. It will develop policies to tackle the threat of foreign interference; limit the undue influence of powerful vested interests; combat sleaze and raise ethical standards; improve democratic participation and engagement; and make our democratic institutions more representative and accountable. 3.4 Rights and equality 3.4.1 Liberal Democrats believe that every person matters. We believe that basic rights and dignity are the birthright of every individual, to be respected, cherished and enhanced. 3.4.2 We exist to build a free society where every person’s rights and liberties are protected. Everyone should be able to live their lives as who they are: free to pursue their dreams and fulfil their potential, safe in the knowledge that their fundamental rights will be protected. 3.4.3 We champion the freedom, dignity and wellbeing of every individual, and will combat all forms of prejudice and discrimination, wherever they exist. We celebrate the UK’s rich diversity as one of its greatest strengths, and want to ensure it is better reflected throughout public life. 3.4.4 In the last Parliament, Conference passed a substantial and wide-ranging motion on racial justice, developed jointly by the FPC and the Liberal Democrat Campaign for Race Equality (LDCRE). This built on a detailed policy paper on eradicating racial inequality, endorsed by Conference in 2018. 3.4.5 The last Parliament also saw Conference pass motions on other key rights and equalities issues, such as tackling violence against women and girls, supporting disabled people into work, banning conversion therapy, and defending the Human Rights Act and the European Convention on Human Rights. 3.4.6 These motions formed the basis for a very strong chapter on rights and equality in our manifesto for the last general election, including its priorities to: * Champion the Human Rights Act and resist any attempts to weaken or repeal it. * Develop and implement a comprehensive Race Equality Strategy to address deep inequalities, including in education, health, criminal justice and the economy. * Tackle misogyny and violence against women and girls, and give police and prosecutors the resources and training they need to prevent and prosecute all hate crimes while supporting survivors. * Give everyone a new right to flexible working and every disabled person the right to work from home if they want to, unless there are significant business reasons why it is not possible. * Respect and defend the rights of people of all sexual orientations and gender identities, including trans and non-binary people. * Ban all forms of conversion therapies and practices. * Scrap the Conservatives’ draconian anti-protest laws, restoring pre-existing protections for both peaceful assembly and public safety, and immediately halt the use of live facial recognition surveillance by the police and private companies. 3.4.7 Since the general election, Conference has also passed a comprehensive motion on LGBT+ equality, supported by a detailed spokesperson’s paper. 3.4.8 Rights and equality are of fundamental importance to the party, and should be at the heart of our approach to every issue. However, given the amount of recent policy development by the party on these issues, we do not believe they need to be the focus of a specific new working group now. 3.5 Immigration 3.5.1 Liberal Democrats are immensely proud of the UK’s history of welcoming people seeking to build their lives here, and providing sanctuary to refugees fleeing war and persecution. We recognise that people from all over the world have greatly enriched our economy, our culture and our communities – and we celebrate their contributions. 3.5.2 We believe that British employers must be able to hire the workers they need, and those who choose to come to the UK to work or study should be welcomed for the skills and contributions that they bring. Family unity must be protected; the rule of law must be respected; and taxpayers must get a fair deal. Everyone should be able to have confidence that the immigration system is functioning properly. 3.5.3 In our manifesto for the general election, we set out a detailed and comprehensive set of policies to build a fair, effective immigration system that treats everyone with dignity and respect, while preventing dangerous Channel crossings and combating people smuggling, human trafficking and modern slavery. This built on the detailed policy paper on immigration endorsed by Conference in 2018, as well as numerous policy motions on refugees and asylum passed by Conference in the last Parliament. 3.5.4 Our manifesto chapter on immigration and asylum set out our priorities to: * End the Hostile Environment and invest instead to tackle smuggling, trafficking and modern slavery. * Transfer policy-making over work visas and overseas students out of the Home Office and into other departments. * Scrap the Conservatives’ Illegal Migration Act, uphold the Refugee Convention, and provide safe and legal routes to sanctuary for refugees. * Tackle the asylum backlog by establishing a dedicated unit to improve the speed and quality of asylum decision-making, introducing a service standard of three months for all but the most complex asylum claims to be processed, and speeding up returns of those without a right to stay. * Lift the ban on asylum seekers working if they have been waiting for a decision for more than three months, enabling them to support themselves, integrate in their communities and contribute to the economy. * Work closely with Europol and the French authorities to stop the smuggling and trafficking gangs behind dangerous Channel crossings. 3.5.5 Our proposals were very well-received by experts and stood in clear contrast with the unworkable, inhumane agendas of other parties. So, while this is clearly an area of significant public concern, we believe the party already has the right policies and approach, and therefore do not believe that the party should seek to change that approach through a working group on it now. 3.6 Community 3.6.1 A deep commitment to community politics has always been fundamental to the Liberal Democrats. We believe that, if someone wants to do their bit, and play their part in their community, they should have the opportunity and the power to do so. 3.6.2 The state should empower everyone to contribute fully to their communities and take part in the decisions that affect their lives. Local decisions should be made locally, with powers and resources devolved to councils and communities. 3.6.3 The party set out policies to tackle the funding crisis in local government in a motion passed by Conference in 2024 and our manifesto for the general election, including providing multi-year settlements, boosting the supply of social housing, and forging a long-term, cross-party agreement on social care. Looking beyond the specific issue of local government funding, we are proposing a new policy working group on empowering local communities, to develop our vision of a society where residents and community groups have far more control over the decisions that affect their communities. This would be a cross-cutting, thematic working, embracing voluntary community activity as well as elected local government. 3.6.4 Liberal Democrats also know that a home is a necessity and the base on which people build their lives. We believe that everyone should have convenient, affordable options to get around – whether to get to work or the shops, to go to school or hospital, to visit friends and families or to access other services. And we see vibrant town centres and local high streets as vital to community life and local prosperity. 3.6.5 In the last Parliament, Conference endorsed a comprehensive new policy paper on tackling the housing crisis, so that everyone can afford to buy or rent a home of good quality where they live. This was reflected in our manifesto for the general election, with its priorities to: * Increase building of new homes to 380,000 a year across the UK, including 150,000 social homes a year, through new garden cities and community-led development of cities and towns. * Deliver a fair deal for renters by immediately banning no-fault evictions, making three-year tenancies the default, and creating a national register of licensed landlords. * Make homes warmer and cheaper to heat with a ten-year emergency upgrade programme, and ensure that all new homes are zero-carbon. * Give local authorities, including National Park Authorities, the powers to end Right to Buy in their areas. * End rough sleeping and immediately scrap the archaic Vagrancy Act. * Abolish residential leaseholds and capping ground rents to a nominal fee, so that everyone has control over their property. 3.6.6 The party also passed a wide-ranging motion on transport in 2023, and our general election manifesto included proposals to: * Freeze rail fares and simplify ticketing on public transport to ensure regular users are paying fair and affordable prices. * Significantly extend the electrification of Britain’s rail network, improve stations, greatly improve disabled access, reopen smaller stations and deliver Northern Powerhouse rail. * Boost bus services by giving local authorities more powers to franchise services and simplifying funding, so that bus routes can be restored or new routes added where there is local need, especially in rural areas. * Transform how people travel by creating new cycling and walking networks with a new nationwide active travel strategy. 3.6.7 We therefore do not believe that new working groups on housing or transport are needed now, despite the importance of these issues. 3.6.8 As mentioned above, the FPC has recently established a new working group on town centres and high streets to bring a paper to Spring Conference 2026. This will develop policies on reshaping town centres to provide thriving community spaces fit for the future, and the changing nature of high streets, including the growth of markets, events and festivals. 3.6.9 We also recognise that rural communities face distinctive challenges on everything from transport to health services to crime – especially after the Conservative Government took them so badly for granted and now the Labour Government simply doesn’t seem to understand them. The party recently adopted a comprehensive policy paper on farming and fishing, but we recommend a new working group on rural communities to develop further policies on issues such as the non-farming rural economy, rural crime and delivery of public services, including healthcare, in rural areas. 3.7 Environment 3.7.1 Liberal Democrats believe that everyone should be able to enjoy the benefits of a flourishing natural environment, and our children should inherit the healthy planet they deserve. We believe that each generation is responsible for the fate of our planet and, by safeguarding the balance of nature and the environment, for the long term continuity of life in all its forms. 3.7.2 That means we must act now to tackle the climate and nature emergencies: investing in green technologies and skills training, cutting air and water pollution, and taking a new approach to farming and the countryside. 3.7.3 If we do act with urgency and ambition, the UK can lead the world with innovation and ingenuity, while boosting the economy and enhancing everyone’s quality of life. 3.7.4 In the last Parliament, Conference endorsed detailed policy papers on tackling the nature crisis and food and farming, as well as passing a motion specifically focused on sewage and the water industry, supported by a detailed spokesperson’s paper. These were reflected in our manifesto for the last general election, including its priorities to: * End the sewage scandal by replacing Ofwat with a tough new regulator, transforming water companies into public benefit companies, and banning bonuses for water bosses until discharges and leaks end. * Stop the decline of our natural environment and ‘double nature’ by 2050: doubling the size of the Protected Area Network, doubling the area of most important wildlife habitats, doubling the abundance of species and doubling woodland cover by 2050. * Support profitable, sustainable and nature-friendly farming by accelerating the rollout of the new Environmental Land Management schemes, properly funding it with an extra £1 billion a year. * Plant at least 60 million trees a year, helping to restore woodland habitats, increase the use of sustainable wood in construction, and reach net zero. * Pass a Clean Air Act, based on World Health Organization guidelines and enforced by a new Air Quality Agency. 3.7.5 On climate change, our manifesto set out a comprehensive package of bold, urgent actions to reduce emissions, cut energy bills and create hundreds of thousands of secure, well-paid new jobs, including: * Making homes warmer and cheaper to heat with an emergency upgrade programme. * Investing in renewable power and driving a rooftop solar revolution. * Making it cheaper and easier for drivers to switch to electric vehicles, as well as boosting public transport and creating new cycling and walking networks. * Providing skills training, incentives and advice to help families and businesses with the transition to net zero. 3.7.6 A new policy paper on climate change will be debated at Autumn Conference 2025. 3.7.7 Given the large amount of policy development the party has done in this area recently, we do not believe another new working group on it is needed now. 3.8 Global instability 3.8.1 Liberal Democrats are proud internationalists. We believe that our country and our people thrive when we are open and outward-looking. The UK can be an incredible force for good when it stands tall on the world stage, championing the values of equality, democracy, human rights and the rule of law. 3.8.2 Both the Covid pandemic and Vladimir Putin’s illegal war in Ukraine show that events beyond Britain’s borders inevitably become our concern. UK foreign policy therefore needs to take account of the domestic implications of conflict, instability, natural disasters and other developments around the world. 3.8.3 We are passionate about close British-European cooperation, which benefits us and our allies. In the last Parliament, Conference endorsed a detailed policy paper setting out a comprehensive step-by-step plan to rebuild our ties of trade, trust and friendship with the European Union, while recognising that those ties can only be built back gradually over time. Those proposals were expanded upon in a motion responding to Donald Trump’s return to the White House, with our policy to negotiate a new UK-EU customs union by 2030 at the latest. 3.8.4 Last year, the party also endorsed a wide-ranging policy paper on international security covering defence and security, diplomacy, international development and soft power. We knew then that a second Trump presidency would pose big new challenges. Now that the grave threats to the future of NATO, European security and more are starting to become clear – and will continue to evolve – the FPC has, at the recommendation of the Policy Review working group, established a new international security working group to review that paper and update it in light of the world as it is today. It has been tasked with developing a policy paper for Autumn Conference 2026. 3.8.5 That paper will necessarily take a high-level view of these issues. We expect that it will highlight particular areas within its broad remit that the party may want to focus on for more detailed policy development beyond 2026. This could potentially include further work on the UK’s international status, role and relationships, including with the EU and its member states. 3.8.6 It is essential that the UK strengthens our own defence capabilities, as well as cooperating closely with NATO allies and other partners, including in Europe and the Commonwealth, to ensure security and reduce risks. At the same time, with a fractious international community distracted from working together on global challenges such as climate change, nature depletion, access to critical minerals, or risks associated with new technologies, we should use our voice to keep such issues high on international and domestic agendas. 3.8.7 Given the interconnectedness of the modern world, we also need to be mindful of wider global events and how they might affect parts of the UK population, domestic political debate and community wellbeing. We also need to be able to communicate clearly how foreign policy and international developments have a direct impact on the everyday lives of people here in the UK. 4 Conclusion 4.1 Our review of Liberal Democrat policies reveals a wealth of bold, distinctive proposals to create the fair, free and open society we aspire to. 4.2 In the last Parliament, we set the policy agenda on so many key issues. Liberal Democrats were the first to call for a windfall tax on the oil and gas giants to keep energy bills under control; the first to highlight the appalling sewage scandal and call for measures to stop it; and the first to argue that Boris Johnson’s Brexit deal would be a disaster and put forward a detailed, step-by-step plan to fix our relationship with Europe. And we did so well in the 2024 general election largely because of the hopeful vision we set out in our manifesto – especially with our ambitious policies on health and care. 4.3 So now we must continue to lead the way, with new policy development focused on the priorities identified by this review. This work will naturally be guided by the party’s core values: freedom, equality, community, internationalism, human rights, environmentalism and democracy. It should also seek to develop policies that exemplify those values clearly to the public, equipping our parliamentarians, councillors, candidates and campaigners to make the case for the Liberal Democrats – in Parliament and on councils, in the media and on the doorstep. Leading the Way: Policy Review Policy Paper 161 This paper has been approved for debate by the Federal Conference by the Federal Policy Committee under the terms of Article 7.4 of the Federal Constitution. Within the policy-making procedure of the Liberal Democrats, the Federal Party determines the policy of the Party in those areas which might reasonably be expected to fall within the remit of the federal institutions in the context of a federal United Kingdom. The Party in England, the Scottish Liberal Democrats, the Welsh Liberal Democrats and the Northern Ireland Local Party determine the policy of the Party on all other issues, except that any or all of them may confer this power upon the Federal Party in any specified area or areas. The Party in England has chosen to pass up policy-making to the Federal level. If approved by Conference, this paper will therefore form the policy of the Federal Party on federal issues and the Party in England on English issues. In appropriate policy areas, Scottish, Welsh and Northern Ireland party policy would take precedence. ________________ The Policy Review Working Group The members of the working group who have prepared this paper are listed below. Sir Ed Davey MP (chair) Eleanor Kelly (vice-chair) Steff Aquarone MP Ulysse Abbate Dr Sam Barratt Cllr Prue Bray MBE Dr Christine Cheng Victoria Collins MP Em Dean Cllr Laura Gordon Stephen Gosling CBE Ruth Gripper Jeremy Hargreaves MBE Chloe Hutchinson James Kempton MBE Sian MacLeod Chris Nicholson Jonny Singh Warwick Smith Neil Stockley Professor Irina von Wiese Jim Williams Andy Williamson Staff Christian Moon Jonathan Jones Note: Membership of the working group should not be taken to indicate that every member necessarily agrees with every statement or every proposal in this paper. Further copies of this paper can be found online at: https://www.libdems.org.uk/members/make-policy/#policy-papers Autumn Conference 2025