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, the power of the government to tackle these challenges is constrained. At the same time, charities and local authorities are facing major funding gaps which threaten their ability to deliver much-needed services.
Businesses have an unrivalled ability to innovate and scale solutions to complex problems, and – together with investors – they are eager to help. 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 by £149 billion per year by some estimates. 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.
Approach
Over 2023, ReGenerate carried out desk research and interviews to develop a tracker of c. 380 policy ideas supporting businesses to profitably do good that have been put to the government in the last decade. With input from government, business, investment and civil society leaders across ReGenerate’s network, this was whittled down to a shortlist of 10 high-impact, compelling policy ideas.
Convening the best of UK business to tackle the challenges of today
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Establishing effective government-business partnerships focused on tackling social and environmental challenges, with proposed models including (1) The Prime Minister’s Business Breakfasts; (2) A people and planet-focused Industrial Strategy Council; and (3) The Prime Minister’s Business Action Council.
Partnerships could be supported by a dedicated unit within government, which would provide a single focal point for businesses and investors seeking to support the government’s social and environmental priorities, and be responsible for policies needed to enable businesses and investors to profitably do good more broadly.
Embedding environmental and social responsibility into the heart of the legal framework for companies
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Nudging more businesses toward purpose-driven articles of association by introducing new model articles of association, refining the Companies House incorporation process and updating the gov.uk interface.
The government could seek to partner with industry champions to encourage business takeup within their sectors.
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