Blog
British business – on the economy, the Brexit hangover and politics
10 July 2024
by Charlotte Gowen, Research Executive
In the current ever evolving and uncertain business landscape, British businesses find themselves faced with an array of issues. As part of Echo Research’s annual Britain’s Most Admired Companies study, we asked the leaders of the UK’s largest businesses “What is the main issue of concern currently affecting British businesses?”
At the forefront of all issues before the start of this year was the economy with over half (54%) of participants citing it as their most pressing issue. British businesses are confronted with the economic challenges of Brexit, the cost-of-living crisis, inflation, high interest rates and macroeconomic uncertainty which combined are putting enormous pressure on operational performance. One business leader said “Inflation and the cost-of-living crisis, including rising energy costs. The effects of both on business costs and customer spending is a huge issue.”
The impact of Brexit continues to rankle, with business leaders referring to it as the “Brexit hangover” or the “post-Brexit brain drain”. In our 2022 study, participants were asked to rate the impact Brexit had on their company/sector, with over half stating that supply chain management, the ability to attract develop and retain top talent, international trade and regulatory management were all made more difficult. A year on, these issues continue to linger.
The second most prominent concern cited among our C-suite respondents was the political landscape. The added complexities of post-Brexit regulations and trade agreements, and more challenging trading conditions make it hard to compete in a global marketplace. One participant stated, “We are a small island in a big world, and we need to attract business to the UK, and lack of confidence in the government makes this harder.”
Somewhat surprisingly, only 3% of respondents felt ESG and/or Environmental and Social factors were significant issues. This may reflect the operational pressures dominating UK businesses since the invasion of Ukraine and the subsequent economic shock it precipitated; a sign that sustainability and social progress may be taking a back seat in Boardroom priority setting.
Nevertheless, among these challenges lies an opportunity for innovation and growth. British businesses poised for success in these unstable times are those capable of demonstrating adaptability, innovation, and resilience.
The Britain’s Most Admired Companies study is the longest-running annual survey of corporate reputation in the UK, run by leading reputation specialists and Expert Witnesses, Echo Research. For more information about Britain’s Most Admired Companies study please click here.
