Policy and governance
Championing business, promoting good governance
The IoD is committed to supporting a dynamic, innovative and responsibly governed economy. Our policy work ensures that the priorities of our members and the wider business community are heard clearly by the governments of Westminster and the devolved nations, and by policymakers.
Promoting pro-business reform
2025 was a challenging year for UK businesses. The rise in business taxation in 2024 and ongoing fiscal uncertainty weighed on sentiment, constrained investment and slowed hiring. We promoted pro-business reform, pressed for regulatory and fiscal certainty and provided evidence-based analysis to decision-makers.
Policy Voice
To ensure we’re representing our members’ views accurately, we kept up our monthly Policy Voice surveys and three-times-a-year Economic Policy and Trend meetings. Membership of this poll spans all sectors and regions – from listed companies to microbusinesses – offering a representative snapshot of UK business sentiment.
Employment Rights Act
A major policy focus in 2025 was the passage of this new legislation. Alongside tax reform, scaling back aspects of the proposed employment changes was identified by members as key to restoring business confidence in 2026.
UK-EU reset and trade
We continue to work with the government to address regulatory divergence and its impact on UK firms, with businesses watching closely for developments that could reduce trade friction and ease market access.
Policy ‘wins’ in 2025
In 2025, policymakers adopted several IoD-backed proposals including a six-month qualifying period for additional unfair dismissal protections and maintaining the frequency of OBR economic assessments.
Steven Pearce
For Steven Pearce, business involves applying scientific expertise and clear principles to deliver real-world impact. With a focus on environmental management and sustainable operations, his evidence-led approach demonstrates how responsible practice can support the development of more sustainable industries.
Rie Hamaguchi
For Rie Hamaguchi, business is centred on creating opportunity. Through the provision of safe, affordable housing, she helps bring greater stability to people’s lives, alongside a commitment to mentoring that supports confidence and direction, demonstrating how business can deliver positive social impact.
Jacob Lockwood
For Jacob Lockwood, business is grounded in people and place. By prioritising UK manufacturing and local partnerships, he supports skills and regional economies, reflecting a long-term approach that builds trusted relationships and delivers value beyond financial performance.
Looking Ahead
On behalf of members, the IoD will continue to hold the government to account and ensure members’ voices are heard at the highest levels. We remain focused on helping members navigate a shifting political landscape at home and abroad – always through the lens of the director.
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