Businesses no longer want the government to get out of the way
A new partnership will mean government and business can co-create the opportunities for long-term investment to flow back into the UK, says Iain Anderson
Britain is open for business once again. The election of a new government has not come a moment too soon. Years of under investment in our country and political and constitutional psychodrama have been major barriers to economic growth and opportunity.
Already it is refreshing to see Ministers that do what they say they are going to do – where the dialogue with business sits firmly on top of the table and not under it – and where a partnership with investors is being actively encouraged once again.
We have waited too long for this to happen.
When I authored ‘F**k Business‘ in 2019 – I wanted to try to unpack why a centre right leader could utter those words and the Conservatives didn’t blink. Worse than that they inflicted chaos on our country and drove investors away as a result.
Less than a month since Keir Starmer became Prime Minister and Rachel Reeves became Chancellor – their message of stability and predictability is resonating firmly with investors. And that’s not just an anecdotal view – the strengthening of Sterling is underpinned by that approach while some other global investment destinations are suddenly looking less predictable.
When I published my independent report ‘A New Partnership – A Long Term Plan for Government business relations to power our economy and society‘ – for the then ‘shadow’ business and trade secretary Jonathan Reynolds back in February – I called for a ‘Mission Summit’ early in the life of a new Government.
My call was for a new kind of global investment summit for the UK – one where government and business can co-create the opportunities for long-term investment to flow back into the UK. Not a grandiose event where politicians talk ‘at’ investors and hope they might open their chequebooks. That’s been the problem lately in the UK. Business has had enough of that.
As part of my work I quickly established that New Zealand in the 1980s, Ireland in the 2010s and the United States and France more recently have worked on similar initiatives that proved hugely successful. Partnership working embedded from the start and lasting for the long term.
I was delighted when new Chancellor Rachel Reeves confirmed that ambition and the UK is set to host the first summit in the autumn.
This will provide an opportunity for both domestic and global investors to meet the new government and to work out how to align with the five missions of this government and place rocket boosters under core sectors including life sciences, the hydrogen economy, advance manufacturing, tech, our creative industries and academia as a catapult for economic opportunity.
A new partnership needs to attract both domestic and inbound investors in equal measure. It is also vital it builds on the work of Lord Jim O’Neill and creates space for the SME and wider start up and scale up community.
Already our new government has outlined the size of the ambition. A National Wealth Fund providing a real opportunity to drive long termism in our national investment story. GB Energy – to be led by the brilliant Juergen Maier – with the ambition to be the global leader in energy transition.
This combined with capital markets reform and the dynamic and well considered work being led by London Stock Exchange CEO Julia Hoggett. This and the call from RSA Chief Executive Andy Haldane for the balance of risk vs reward to be reflected in our regulatory approach.
A lot of hard work by good people who want our country to do well has been done on vital reform. It now needs to be unlocked.
All these factors and voices play an important part in every investment decision about our country. They all need to be factored into the summit and provide that springboard for our growth. They are at the core of the discussion we need about the incentives to invest.
We now have a government with a clear plan and clear vision. A government that wants to work with and not against business.
Every business I talk to, the conversation isn’t about government getting ‘out of that way’ anymore. It is about working together again. This is about how we can fire up our future of Britain.
Iain Anderson is chair of H/Advisors Cicero. He authored ‘A New Partnership’