The party faithful gathered in Dorset with a spring in their step, still buoyed by their success in last year’s general election, which saw the party return 72 MPs – the largest Liberal presence in the House of Commons for over a century.

But beneath the upbeat mood and lively discussion was a common theme: how the party could cut through in a political landscape now shaped as much by Reform’s insurgency as Labour’s dominance.

Despite their historic strength, the Lib Dems continue to struggle for national visibility. Reform’s rapid rise in the polls – outpacing even the established parties despite holding just five seats – has redrawn the political environment and forced the Lib Dems to rethink their pitch.

This challenge was evident throughout the conference, where the party was striving to present itself as an optimistic, internationalist alternative to Reform’s populism, while also sharpening its policy offer.

Stunts and substance

Party leader Sir Ed Davey’s headline-grabbing stunts – this year, marching into conference with a brass band – have become a party trademark, helping to secure media attention during the 2024 general election and since.

But as the country faces serious domestic and global challenges, some within the party are questioning whether such tactics are still fit for purpose.

In Bournemouth, the party’s frontbench team sought to balance lighter moments with a clearer articulation of its core values – on Europe, skills, green growth, and support for small businesses and communities.

Business day discussions

The party’s annual Business Day put economic policy centre stage. Deputy Leader and Shadow Treasury Spokesperson Daisy Cooper called for a “rethink” of the economy, focusing on security (economic, national, and food), fairness (tackling inequality), and identity (a stronger sense of belonging).

Sarah Olney MP, business spokesperson, set out ambitions to reform business rates, halve energy bills within a decade, overhaul the apprenticeship levy, and secure a bespoke UK-EU customs union.

And Ed Davey closed the day by underlining the party’s pro-business, pro-innovation, pro-Europe outlook, and saying his party wanted to engage with the business community like it had never done before.

A mixed message for financial services

For financial services, the most significant announcement came from Daisy Cooper: a proposed new levy on the interest banks earn from reserves held at the Bank of England. This is the same idea proposed recently by the think tank the Institute for Public Policy Research.

The proposal, which wasn’t trailed with the sector in advance, would risk harming the competitiveness of the UK’s banking sector and has the potential to complicate monetary policy.

In response I set out that it is important to recognise the banking sector already makes a substantial contribution to public finances, and further tax increases could squeeze banks’ ability to reinvest in innovation and growth – potentially undermining the very economic renewal the Lib Dems seek.

More positively, Daisy Cooper said the party wanted to work “hand in glove” with the banking sector to support lending to business, and we discussed how careful reform of regulation can help to support this.

During a roundtable discussion with Sarah Olney and Baroness Grender, I highlighted our sector’s role in lending to business, channelling investment into the economy, and fuelling enterprise through innovative payment services – and the need for a pro-growth operating environment to reinforce these critical functions.

Looking ahead

For the Lib Dems, Bournemouth was a crucial opportunity to demonstrate their relevance as Labour consolidates power and Reform disrupts the opposition.

There are still questions about how the call for a new bank tax squares with their wider pro-business stance, but their emphasis on partnership and recognition of the financial services sector’s importance leaves room for continued dialogue.

UK Finance will keep engaging with the party to ensure the sector’s role in powering growth, supporting communities, and enabling the transition to net zero is well understood – and reflected in the party’s vision for a “thriving economy and opportunity for everyone”.

Next stop: Liverpool, and the Labour Party Conference.