The UK government must stop making decisions in the dark and properly prioritize and fund research to grow the economy, writes Jane Frost. Since Labour took office in 2024, it has implemented a series of policies, strategies, and funding packages aimed at revitalizing economic growth. However, a fresh wave of geopolitical instability, strained trading relationships, a looming oil crisis, and inflation rising to 3.3 per cent in March have raised fears of higher interest rates.
The Role of Evidence in Uncertain Times
As the corporate landscape is transformed by AI, leaders are struggling to decipher its implications for business strategies, risk management, and the workforce. Latest figures from the Office for National Statistics show job vacancies at a five-year low and rising economic inactivity. Against this backdrop of profound uncertainty, evidence and research-backed insight are critical for confident, intelligent decision-making and meaningful economic growth.
Strategy Over Speculation
Evidence-backed decisions often conjure images of statistics and figures. Business leaders are inundated with data—from commercial performance to customer reviews, economic data to internal productivity. With AI, the volume of information is growing exponentially. However, cold numbers do not equate to real insight. It requires a specific skillset to sift through noise, uncover outliers, and separate correlation from causation. Leaders must turn to qualified research professionals rather than using data to retroactively justify decisions. Dispensing with assumptions and building a true understanding of audiences, markets, and geographies is essential for driving commercial growth. For example, a strategy based on 2025 shopper priorities will struggle against today's volatility.
Making Public Purse Go Further
Evidence is also crucial for ensuring squeezed budgets are well spent, particularly in the public sector. In Labour's nearly two years in power, the population has faced a post-war record £26 billion in tax increases, leading to heightened scrutiny of spending. Yet public coffers remain under pressure. Regardless of May's election outcomes, local, regional, and national governments need confidence that every pound is used effectively to move the economy forward and improve living standards. This requires policies supported by strong evidence, confidently interpreted and intelligently applied.
Playing to Strengths
Growth has been elusive this decade, but the UK has success stories. The research sector itself is one such story, despite being overshadowed by creative industries and professional services. An independent report by PA Consulting found the research and evidence sector contributes £18.7 billion GVA to the national economy, accounting for 0.7-0.8 per cent of UK GVA. Throughout Brexit and regulatory changes, the sector has shown adaptability and strong growth. The UK now exports more research expertise than ever, with the number of UK-based providers conducting projects abroad doubling since 2012. As the world's second-largest research sector, exceeded only by the US, the UK should leverage this expertise domestically. With high-quality evidence and insight, C-suite leaders and policymakers can navigate uncertain times and chart a confident course toward growth.
