Politics and its Impact on UK Businesses

Last week, FWB hosted an executive roundtable dinner in partnership with Charlotte Street Partners. We welcomed guest speakers Mark Diffley, Founder and Director of Diffley Partnership; Malcolm Robertson, Founding Partner of Charlotte Street Partners; and Catherine MacLeod, Senior Adviser at Charlotte Street Partners.

Over dinner, our conversation focused the ever-shifting political and economic landscape in Scotland and the impact of politics on business. Throughout we had comment on how businesses must adapt, against a backdrop of looming policy change, and the continued societal impact of high living costs.

Political uncertainty in Scotland lingers, and will be a constant for the next 18 months, though it has taken on a different shape these days. Independence, a once-burning issue, doesn’t dominate the way it used to. Fewer Scots seem preoccupied with constitutional change, which in itself is telling. The debate has not gone away, and is still an important one, but right now, economic stability, value from public services and combatting child poverty have taken a more prominent spot in voter conversations. It’s a shift, and for businesses with long-term plans, it might offer a bit of breathing room. But there’s no denying that it may cause investor prudence, with nervousness about what is yet to come, as Scotland’s future relationship with Westminster remains unresolved.

Then we turned to the public sector, including healthcare services, where pressure is mounting. And here’s where it gets interesting for businesses: whilst the system reaches capacity, it also presents opportunity for the private sector. Companies offering services that can support the public sector could see a rise in demand if the commercial terms work.

An important discussion point during the evening was business purpose. The recognition of business’ social responsibility beyond profit is significant, especially when it comes to addressing social issues like child poverty. There was a strong feeling in the room that business cannot simply expect the government to tackle such challenges alone. Instead, businesses must pull together and play a more active role in reducing inequality, supporting vulnerable communities, and making a positive impact where it’s needed most. In this way, businesses can become drivers of meaningful change, not just passive observers of political and economic dynamics.

Throughout the night, we also touched on the growing disillusionment with UK political leadership, which could signal future shifts in regulatory frameworks, particularly if pro-independence movements regain momentum. Changes in regulations, trade, and taxation are all potential outcomes depending on how future elections unfold. Businesses will need to stay vigilant and ready for these changes.

At the heart of it all, was adaptability and agility. Businesses need to be ready for shifts in consumer behaviour, trade, and labour markets. Scotland’s landscape may be volatile, but those who stay adaptable and informed will be best positioned to thrive.

We would like to thank our speakers for their invaluable insights and to Charlotte Street Partners, with special thanks to Laura Hamilton and Laura Wright for their exceptional support.

If you are interested in attending similar events in the future, please email Laura at events@fwbltd.com.