IoD press release  Over half of UK business leaders want government to prioritise EU relationship

Ahead of the introduction of the proposed European Partnership Bill and the upcoming UK-EU Summit, currently scheduled for 22 July, the IoD’s latest data shows that 52% of business leaders believe the government should make the EU its top trading priority. This represents a significant increase from 35% in April 2025, underlining growing recognition of the EU’s importance to UK business.

In contrast, the proportion of respondents who believe the government should approach all trading partners equally has fallen to 35%, down from 41%. Support for prioritising the US has dropped sharply, with just 2% of business leaders identifying it as the top priority, compared to 10% last year.

The research also highlights strong support for closer regulatory alignment with the EU. Nearly two-thirds (63%) of respondents back the government’s approach to pursuing closer alignment, with 48% expressing strong support. However, views remain divided, with a quarter (25%) strongly opposed.

Looking at the potential economic impact, 64% of business leaders believe that dynamic alignment with areas of EU legislation would have a positive effect on the UK economy. At the organisational level, 43% say such alignment would positively impact their own business.

At the same time, businesses continue to emphasise the importance of maintaining regulatory autonomy, with three-quarters (75%) saying it is important that the UK retains its sovereignty to shape its own regulations.

Commenting on the latest research, Emma Rowland, Trade Policy Advisor at the Institute of Directors, said:

“Ten years on from the Brexit vote, the gravitational pull towards the EU has strengthened markedly. This data reflects the EU’s enduring role as the UK’s closest and largest trading market, and the one with which firms have the most integrated supply chains. In an increasingly uncertain global environment – characterised by geopolitical tensions, heightened protectionism and increased tariff barriers – business leaders are prioritising stability. The shift away from transatlantic trade is symptomatic of this strive for predictability, something that the US is not offering at the moment.

“While progress in resetting relations is welcome, businesses continue to face friction, particularly around border paperwork and business mobility. The upcoming UK-EU Summit represents a critical opportunity to build on that momentum, particularly in areas such as SPS cooperation and youth mobility, which can deliver tangible benefits for businesses.

“There is also definite appetite from business leaders for closer regulatory alignment with the EU. Opportunities for greater access within the EU market would be the biggest win here. But, the government will need to ensure they are always able to prioritise the interests of UK firms. We look forward to seeing the full details of the upcoming Bill and working with the government to shape the process, so it best serves UK business.

“The message from business is that the UK needs a stronger, more stable foundation with the EU. Businesses have been reassured by the current government’s approach to resetting relations with our European partners. Any new government should continue to seize the opportunities presented by the Reset, whilst ensuring the UK trade strategy is agile and focused on the long-term, so that it reflects the realities of a rapidly changing global economy.”

Full survey results

IoD Policy Voice survey – April 2026

900 responses from across the UK, conducted between 16-30 April 2026. 18% ran large businesses (250+ people), 18% medium (50-249), 21% small (10-49 people), 31% micro (2-9 people) and 12% sole trader and self-employed business entities (0-1 people).

The government has taken the approach of maintaining good relations with all of the UK’s trading partners. However, more recently, it has signalled it will be pursuing closer alignment with the EU. Which of the following do you agree with the most?

IoD Policy Voice survey – January 2026

578 responses from across the UK, conducted between 16-28 January 2026. 11% ran large businesses (250+ people), 16% medium (50-249), 25% small (10-49 people), 33% micro (2-9 people) and 15% sole trader and self-employed business entities (0-1 people).

On balance, to what extent do you support this approach (the government’s proposal to introduce the Bill) to UK-EU regulatory alignment?

What do you think would be the impact on the UK economy of dynamically aligning with areas of EU legislation?

What do you think would be the impact on your organisation of dynamically aligning with areas of EU legislation?

How important is it that the UK should retain its sovereignty to shape UK regulation?