Size Isn’t Everything
By Thomas Barton, Founder and Executive Director at Teos Strategy
The turbulent developments in British and global politics of recent years have consequences for the UK economy and the businesses that operate within it. From dealing with high inflation following Putin’s invasion of Ukraine to global supply chain disruption caused by Houthi attacks on vital shipping lanes, businesses have had to grapple with geopolitical risk. Liz Truss’ short lived premiership and the entailing mini-Budget fiasco forced the business community to confront what it fears most: uncertainty.
Multinational companies and FTSE100 giants have increasingly recognised the real impact political and regulatory developments can have on their bottom lines. As such, a growing number of big businesses invested in the UK have been hiring in-house lobbyists to drive their government engagement, as well as signing lucrative contracts with a mushrooming number of political consultancies.
While political and regulatory change regularly impacts the entire business landscape, access to quality political intelligence and advice on how to influence the Westminster policymaking process have been the near exclusive preserve of big business. Despite SMEs delivering 61% of private sector jobs, research finds FTSE100 companies account for 80% of spend on political consulting services in the UK. The reality is that big business have a stranglehold over access to political intelligence while SMEs are simply priced out of understanding and influencing how political and legislative events impact them.
It cannot be right that 99% of British businesses are left behind when it comes to grappling with increasingly unpredictable political headwinds. The need for small businesses to access quality political intelligence is only more acute in an election year as a potential change of government could have a real impact on SMEs. Labour is consistently 20 points ahead of the Conservatives in the polls and while that gap will narrow as the economic situation improves, it is widely expected that Labour will win the next election.
What are Labour saying about their future policies for business? While the party will continue to publicly flesh out their policies as we get closer to an election, which Teos Strategy expects to take place in October or November this year, they have already signalled upcoming policy change. Small retailers should look out for Labour’s proposals to fundamentally reform business rates while SMEs operating in the gig economy will have to grapple with Labour’s plans to clamp down on zero-hour contracts. There will be opportunities for AI companies looking to deliver efficiencies in public health as well as for those SMEs contributing to decarbonisation as Labour looks to invest in making the NHS more productive and in greening the economy. Teos Strategy will be publishing analysis on what various industries can expect to see from a Labour government in the coming weeks.
For too long SMEs have been priced out of the political intelligence and lobbying market. While it is understandable that FTSE100 giants and the UK’s largest employers dominate discussions and influence over government policy, there needs to be a space for SMEs to also shape the policy landscape. Size isn’t everything and SMEs make a vital contribution to the British economy. While it is harder for SMEs to have their voice heard in Westminster, it is certainly possible with access to substantive knowledge of the policymaking process and how to deliver a compelling message to the right influencers in government and Parliament. Our sister company Polis Analysis, a not-for-profit organisation run by volunteers, proved that size isn’t everything when it comes to influencing legislation in Westminster. Polis Analysis managed to successfully work with policymakers to strengthen the Online Safety Act when it comes to tackling online disinformation, despite opposition from big technology companies. At the very least, being equipped with expert political intelligence on how forthcoming political and regulatory change will impact industry and the broader economy is indispensable for SMEs.
That is why SMEs need Teos Strategy, the UK’s first political consultancy dedicated to empowering SMEs committed to making a positive social impact with the knowledge they need to navigate and influence the political landscape. Please reach out at hello@teosstrategy.com for more information about how our services can support SMEs to understand and shape Westminster.