Number 10 Briefing With Lord Livermore: Business Readout

This morning, the UK Government held its first call with public affairs and communications professionals, in a strategy that aims to position it as open for listening and engaging with the business and investment community.

The strategy is a step forward and one that signals a commitment to transparency and collaboration, showing that the government values the insights of business leaders and policy influencers.

By opening the floor to discussion, the government acknowledges the need for shared responsibility in economic progress and aims to align its policies with industry realities. It recognises that growth can only be delivered by working collaboratively with the private sector.

This strategy, though, comes with inherent risks. Public forums invite scrutiny, and businesses will be watching to see whether this level of engagement translates into meaningful policy actions or remains merely a performative exercise.

Yet, as a consultant working in strategy and stakeholder engagement, I am pleased that the government is signaling that it has an open door.

The government must ensure that its words and promises materialise into real regulatory improvements and investment incentives; otherwise, businesses may grow sceptical of such engagements.

Despite these risks, this initiative is a notable move towards a more consultative approach to economic policy-making. If executed well, it can foster a more business-friendly regulatory environment.

Eight years as a specialist within the UK Government have taught me that while engaging with businesses and stakeholders outside of the government in the UK and overseas is critical, equally important is connecting the dots and making sure that the government collaborates with itself and is supported financially in the current spending review and with external expertise. The civil service needs confidence, support, and a clear vision of the practical outcome that gives it purpose and the ability to collaborate better for growth.

Here is a summary of the readout from the call with Lord Livermore hosted by James Carroll.

The UK’s Growth Mission: Why Stakeholder Engagement Matters  

Economic growth is the UK government’s top priority, as reaffirmed by Lord Spencer Livermore in the call that got over 700 communications and public affairs professionals. Lord Livermore stated that this mission, however, cannot be achieved in isolation—growth is driven by business, not government.

Effective stakeholder engagement and strategic collaboration will be crucial for policymakers crafting pro-business reforms and companies looking to shape a regulatory and investment environment that fosters stability, certainty, and expansion.

This is why government engagement matters more than ever: businesses must help steer the narrative and influence policy decisions that impact their future.

The UK’s Three-Pillar Growth Strategy  

Lord Livermore outlined the UK government’s clear framework to drive economic expansion, which is built upon three fundamental pillars:

1. Stability: The Foundation for Growth  

• The budget focused on stabilising public finances, recognising that economic certainty is essential for investment.

• Record levels of R&D funding and capital allowances were safeguarded, ensuring businesses have long-term clarity on taxation and incentives.

• A corporate tax roadmap was introduced, capping corporation tax at 25% for the duration of the current Parliament.

2. Reform: Removing Barriers to Growth

• The Infrastructure and Planning Bill will be fast-tracked to remove delays in major projects, including clean energy developments and housing.

• The government is currently engaging regulators in a deregulatory push to eliminate red tape that stifles business expansion.

• New sectoral industrial strategies will highlight opportunities for investment and reduce regulatory obstacles.

• Brexit-related trade barriers are being reassessed, with a renewed focus on strengthening ties with the EU, US, and China.

3. Investment: Driving Business-Led Expansion

• The expansion of offshore wind by 16GW will align with the UK’s clean energy transition.

• The third runway at Heathrow to improve global trade connectivity, with planning consent targeted by the end of this Parliament.

• The Oxford-Cambridge Growth Corridor is designed to become Europe’s Silicon Valley (can we please stop calling and comparing what we are trying to build to Silicon Valley?!).

• A National Wealth Fund to help de-risk private sector investments in emerging industries.

Summary Of Key Announcements and Business Implications

Lord Livermore talked about The Chancellor’s latest speech, which introduced a series of significant economic policies designed to unlock long-term growth opportunities. Among the most notable:

• £100 billion in capital investment over the next five years, to be allocated through the Spending Review.

• Small business support, including an increase in the Employment Allowance and improved public sector procurement access.

• Pension fund reforms to unlock greater domestic investment in high-growth industries.

• Ten-Year Infrastructure Strategy, providing long-term certainty for businesses and investors. 

The Question and Answers From Lord Livermore

1. Planning and Infrastructure Changes

• Question (Simon): How quickly will planning regime changes and infrastructure bill reforms take effect?

• A (Lord Livermore): The government is prioritising fast-track planning for major projects, including clean energy infrastructure. The Infrastructure and Planning Bill will be accelerated through Parliament with a “sizable majority” in the House of Commons.

2. Project Pipeline for Private Investment

• Question (Lee): Will the government create a clear pipeline for projects with mixed public-private financing?

• Answer: Yes. Three key strategies will signal investment priorities:

• Industrial Strategy: Identifies key high-growth sectors.

• National Wealth Fund: Helps de-risk private investments in areas like clean energy.

• 10-Year Infrastructure Strategy: Aligns major projects with private sector investment.

3. Encouraging Risk-Taking and Entrepreneurial Culture

• Question (Karen): How can the UK rekindle its risk appetite and entrepreneurial culture?

• A: Stability is key for businesses to take risks. The government extended Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) incentives for 10 years to support start-ups.

4. Supporting Small Businesses

• Question (Laura): What can be done to boost confidence among the smallest businesses?

• Answer:

• National Insurance Employment Allowance doubled to £10,500.

• Procurement reforms to improve small business access to public contracts.

• A new Small Business Strategy to be published later this year.

5. Responding to Business Criticism

• Question (James): Some businesses are critical of the government’s economic handling. How can firms that want to promote a positive UK narrative work with the government?

• Answer: The government encourages businesses to highlight opportunities rather than economic challenges. Groups like the CBI, IoD, and British Chambers of Commerce responded positively to the Chancellor’s speech, reinforcing confidence.

6. Spending Review’s Role in Growth Strategy

• Question (Susan): How critical is the spending review in delivering growth?

• Answer: The review will allocate £100 billion in new capital investment over five years, funding infrastructure, industrial strategy initiatives, and clean energy projects.

7. Addressing Global Economic Headwinds

• Question (Hayley): How can the UK navigate global economic challenges?

• Answer:

• Economic stability and resilience are crucial.

• Strengthening trade ties with the EU, US, and China will help offset global uncertainty.

Newsworthy Quotes from Lord Livermore  

• “Growth is our number one mission, and we recognise that business—not government—drives wealth creation.”

• “We are determined to draw a line under the instability of the past 14 years and create a stable foundation for economic growth.”  

• “Planning is the number one barrier to growth—fixing it is our top priority.”  

• “We need to instil confidence in businesses by removing barriers, ensuring access to finance, and providing regulatory certainty.”  

Does the UK Need a More Risk-Friendly Culture?

One of the most thought-provoking questions raised during the Q&A session was: “How can the UK rekindle its risk appetite and entrepreneurial culture to drive growth? Lord Livermore acknowledged that while the UK is a great place to start a business, scaling up remains challenging. The government has extended the Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) tax incentives for another decade, but there is an urgent need to foster a culture that encourages calculated risk-taking. Greater policy stability and improved access to finance are key components in creating an environment where innovation thrives.

Strategic Implications for Businesses and Investors  

The government’s engagement with businesses signals an opportunity for proactive involvement in shaping policies that matter. Here’s what business leaders should consider:

• Policy Advocacy Matters: Companies and investors should actively engage with government consultations to ensure their interests are reflected in policy decisions.

• Regulatory Changes Are Coming: Businesses should prepare for reforms in planning laws, financial regulations, and sectoral strategies that will impact operations and investment flows.

• Trade Relationships Will Evolve: As the UK resets its post-Brexit strategy, firms with international operations should monitor upcoming trade negotiations.

What Comes Next?  

The UK’s economic strategy is ambitious, but its success will depend on how well businesses and policymakers collaborate to implement these initiatives.

For companies, now is the time to engage with the government, participate in consultations, and advocate for policies that support long-term investment and growth. The UK government's message is clear: growth is a shared mission, and businesses are at the heart of making it happen.

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