The Business Voice: A Call for Real Engagement in Government

April 4, 2025, 10:52 am
The Centre for Policy Studies
The Centre for Policy Studies
Enterprise
Location: United Kingdom, England, London
The relationship between business and government is a delicate dance. It requires finesse, understanding, and, most importantly, genuine engagement. Yet, the current state of affairs in the UK civil service suggests a disconnect. The government needs a strong voice from the business world, not just another mid-level bureaucrat. This is not just a matter of preference; it’s a necessity for economic growth and stability.

The recent job posting for a Business Engagement Lead for the Chancellor of the Exchequer highlights this issue. With a salary range of £55,760 to £65,000, it’s unlikely to attract top-tier talent from the business sector. This is a missed opportunity. The role demands someone with experience, connections, and a deep understanding of the business landscape. Instead, it risks being filled by someone who may not have the necessary clout or insight.

The Labour Party once thrived on its relationship with the business community. Breakfast meetings with industry leaders became a hallmark of their strategy. But now, that relationship is fraying. Decisions like increasing Employer National Insurance Contributions have raised eyebrows. The Employment Rights Bill has added to the anxiety. The government must recognize that business leaders are not just stakeholders; they are partners in progress.

In opposition, Labour relied heavily on business insights to shape policy. Now, in government, that expertise seems overshadowed by the machinery of the civil service. The disconnect is glaring. While other countries have embraced a proactive approach to business engagement, the UK lags behind. Competitors have learned to roll out the red carpet for investors. They understand that a thriving business environment translates to job creation and economic prosperity.

Consider the example of Unilever. When the company was deciding where to base its global headquarters, the contrast between the UK and the Netherlands was stark. The Dutch Prime Minister was in constant contact with Unilever executives, while the UK Prime Minister made only one call. This is not just a failure of communication; it’s a failure of vision.

There have been improvements. Figures like Franck Petitgas and Varun Chandra have made strides in bridging the gap between business and government. Yet, these efforts cannot rely solely on individual personalities. The government must institutionalize business engagement. It should be a core function, not an afterthought.

The Labour Growth Group has recognized the need for external talent in the civil service. This is a step in the right direction. However, the challenge remains: how to effectively integrate business insights into government decision-making. It’s not just about hiring the right people; it’s about creating a culture that values business input.

Investing in senior officials who can engage with businesses may seem costly initially. But the long-term benefits are undeniable. A government that understands the needs of businesses can create policies that foster growth. When businesses thrive, society benefits. Jobs are created, innovation flourishes, and tax revenues increase. It’s a cycle of prosperity.

The UK government’s recent foray into social media, with the launch of its Reddit account, is a step towards modernization. However, it’s not enough. Engaging with the public online is one thing; engaging with the business community is another. The government must go beyond social media gimmicks. It needs to foster real relationships with industry leaders.

The recent panel discussion on the Spring Statement highlighted the importance of dialogue. However, the turnout was not solely due to the speakers. It was a reflection of the growing interest in how government policies impact businesses. The public is hungry for transparency and engagement. The government must respond.

Mistakes happen, as seen in the recent mix-up involving protest groups. But these errors underscore a larger issue: the need for clarity and understanding in communication. The government must strive for accuracy and transparency in its dealings with both the public and the business community.

In conclusion, the UK government stands at a crossroads. It can choose to continue down the path of bureaucratic detachment or embrace a new era of engagement. The business community is not just a source of revenue; it is a vital partner in shaping the future. By prioritizing real voices from the industry, the government can create a more dynamic and responsive policy environment. The time for change is now. The business voice must be heard loud and clear in the corridors of power.