The chief executive of investment giant BGF has revealed that business leaders across Britain feel the Labour government is failing to provide adequate support for the private sector.
Speaking on an upcoming episode of City AM's Boardroom Uncovered podcast, Andy Gregory said a recent survey of BGF's portfolio companies showed widespread concern about Prime Minister Sir Keir Starmer and Chancellor Rachel Reeves' approach to business challenges.
Survey Reveals Business Frustration
Gregory stated that the survey results, which are currently being kept confidential, clearly indicated that entrepreneurs believe the government "certainly does not appear to be doing enough" to support them.
He emphasised that business leaders feel Starmer and Reeves are "not empathetic enough to the challenges" facing companies, particularly smaller scale-up businesses that form the backbone of regional economies.
The survey also highlighted that fears of potential tax increases in the upcoming Budget are causing business leaders to hesitate on long-term investment decisions.
Impact on Investment and Growth
Gregory warned that "the UK economy desperately needs the private business sector to be growing" but current uncertainty is making it difficult for companies to commit to expansion plans.
He explained that for small businesses considering significant investments like new factories or overseas expansion, the unstable backdrop could make such decisions "existential" in nature.
The BGF CEO stressed that "business is clearly not some amorphous mass that can just be gone after for tax" and called for greater collaboration between government and entrepreneurs.
BGF's Track Record and Future Plans
Since its establishment in 2011, BGF has invested approximately £5 billion in around 600 businesses, with its current portfolio containing 360 companies.
Notably, 70% of these firms are based outside London and the South East, demonstrating the fund's commitment to regional development.
Gregory revealed that BGF's portfolio companies have generated about £7 billion in revenue growth and £1 billion in additional exports, while creating approximately 27,000 new jobs.
Looking ahead, BGF plans to deploy £3 billion over the next five years, building on the £2.2 billion invested in the previous five-year period.
Celebrating Entrepreneurship in Britain
When asked what he would do as Prime Minister for a day, Gregory said he would institute "a day of real celebration of entrepreneurship".
He argued that entrepreneurs are not celebrated enough in the UK and that success is sometimes viewed less positively than in other countries.
Despite acknowledging the challenges facing British businesses, Gregory rejected the notion that Britain is broken, stating "No. Absolutely not" when asked if he agreed with the 'Broken Britain' narrative.
He concluded that while the UK remains "a hard place" to do business, there are still significant opportunities for growth and investment across the country.
