UK2030: defining a path to global business competitiveness

The UK is facing a unique decade in its economic history: a decade which has started with the significant economic disruption wrought by the COVID-19 pandemic and a nascent post-Brexit trade and regulatory framework.

Both are going to catalyse profound changes to the UK business environment, and accelerate other key drivers of challenge and opportunity, including digitalisation and the rise and rise of ESG.

Now is the time for the UK to reshape and adapt its economy and develop a distinctive trade, tax and regulatory regime to increase the UK's global competitiveness and make it an attractive place to invest and do business. In doing so, the UK will have to weigh up the opportunities of change with the risks of divergence from the known rules of the EU, and it will have to look to global standards and frameworks. Whether it succeeds – and whether you succeed in seizing those opportunities – depends on active, constructive engagement that aligns your business purpose and model with a forward-looking policy environment.

An economic realignment built on digitalisation, innovation, environmental and social responsibility and sound governance is achievable. Many businesses are leading the way on one or more of these, but it is critical that your strategy brings them together, and recognises that business action and governmental action can work hand in hand.

There is now increasing recognition, both from a political and social standpoint, of the criticality to our future of environmental, social and governance (ESG) considerations. This focus will only continue to grow as a consequence of a rapidly changing legal and regulatory environment and because investors, stakeholders, current and prospective employees, ratings agencies and law-makers are now more focused on ESG strategy than ever before.

Accordingly, central to driving business success in the UK will be collaboration between the UK Government and business to establish an eco-system where people, commerce and planet prosper in a way that is sustainable now and in the future.

To remain successful, businesses must also examine all aspects of who they are, what they do and how they do it through the ESG lens and make those changes necessary to ensure that the business is appropriately positioned on sustainability issues to secure its success now and in the long-term.

The breadth of issues covered by the "ESG" banner and, particularly in the case of social and governance matters, the lack of a clear taxonomy can make it challenging for businesses to clearly understand what they must do to be sustainable. Further, public awareness of ESG issues such as the carbon footprint of a business, the providence of the products supplied by a business, together with increasing demands from regulators and wider stakeholders that a business demonstrates compliance with ESG metrics, means that no business can afford to ignore such considerations.

Digital technologies continue to reshape the way we live and work.

Over the next 10 years, businesses that realise the benefits of disruptive digital technology and data will be at the core of the UK’s recovery from the impact of COVID-19 and its bid to build a post-Brexit future that is environmentally and socially sustainable. Those businesses need multi-disciplinary and commercially focused legal advisors who understand digital.

This is a pre-requisite for businesses across sectors, not just technology providers. It is fundamental to harnessing the benefits of technology to develop and continually improve new products and services, and to optimising the efficiency of operations.

We can help you to understand and respond to the forces that will drive change by:

• providing political and policy intelligence that is based on first-hand experience of working inside the centre of government, a deep understanding of your sector and of the balance policy makers need to strike between political and economic priorities; and

• providing thought leadership based on our broad experience across all regulated sectors and globally that spots convergences and differences and shares valuable lessons.

 
That means helping you both to understand the business environment today and also take a strategic view on how it could develop and what impact that could have on your future business.

We can help you to engage effectively with the parts of government departments, regulators and legislators that will shape the policy and regulatory environment in which you operate. Sharing your insights, we can use our legal, regulatory and governmental expertise to help you to understand where the policy is being developed within government, what priorities government needs to show, and then to develop and deliver solutions that meet these priorities, and to demonstrate that they do so.

At a time of acute challenge and change, policy and legislation decisions are being made rapidly, informally and with little consultation or scrutiny. It is critical to know the right question to ask the government, and to do so swiftly and within a trusted and respected relationship. It is also important to be able to do this with a credible understanding of the relevant law and regulatory position, part of which will include laying the groundwork for challenge as the ultimate tool for putting pressure on good decision-making.

Acting means making and implementing the right decisions on engagement with, and operation and investment in, the UK market.

That means identifying and implementing the investments, business models and deal structures which take advantage of the new opportunities, and manage the new challenges, associated with the UK market.

By understanding how corporate strategies and structures link with the regulatory and business environment we can help you to both design and put into practice your response through corporate and commercial structures and associated transactions.