Policy

Why this work is needed

To achieve policy priorities without putting further strain on the public purse, the UK government needs businesses to profitably do good. Social and environmental challenges are mounting: the cost of living is soaring, over 30% of children are living in poverty and the effects of climate change are increasingly being felt. Yet, with national debt topping 100% of GDP in 2023, and charities and local authorities are facing major funding gaps, the power of the public and nonprofit sectors to tackle these challenges is constrained.

Businesses have an unrivalled ability to innovate and scale solutions to complex problems, and – together with investors – they are eager to help tackle the UK’s biggest social and environmental challenges. Polling by ReGenerate and the British Academy found business leaders as likely to think that their company’s purpose is to profitably tackle the problems of people and planet as to maximise shareholder returns. Meanwhile, the UK’s impact investing market is expected to grow to over £100 billion in the next few years.

Unleashing their power will also support much-needed growth and investment, boosting GDP growth by £149 billion per year. This is in line with strong and growing evidence that businesses that profitably do good are more successful and resilient, as more people want to invest in, buy from and work for them.

Despite this, business impact is not what it could or should be. A significant reason why is because the government is not fully behind it. ReGenerate is dedicated to changing this.