IoD press release Trends, risks and opportunities for business in 2025

The Institute of Directors (IoD) has today published a new policy paper, Annual Policy Outlook: Trends, risks and opportunities for business in 2025. The paper reviews the main UK policy developments that affected business in 2024, and explores the economic, political, technological and geopolitical risks and opportunities facing UK business in the year ahead.

The Outlook paper includes analysis in the following areas:

  • Taking Stock of 2024: A year of mixed fortunes for UK businesses, with early optimism turning to low confidence after significant tax and regulatory changes announced in the Autumn Budget.
  • The Big Issues in 2025: A review of Trump’s re-election, geopolitical tensions, global economic challenges, climate change, trade wars, AI advancements, cybersecurity, and organisational culture.
  • Spotlight on Key UK Policy Areas: Detailed analysis on the UK economy, skills and training, employment law, sustainability and energy, international trade, corporate governance, and the devolved nations.

Commenting on the launch of the paper, Dr. Roger Barker, Director of Policy at the Institute of Directors, said:

“2024 was a year of two halves for UK business. After a promising first half, when green shoots of recovery gradually began to emerge, business sentiment took a sharp turn for the worse in the latter months of the year, as business leaders digested the full implications of the government’s early policy decisions. Business was dismayed by the tax increases announced in the Autumn budget, and also concerned by the aggregate impact of proposed employment law reforms.

“With a parliamentary majority of more than 170, the government remains in a strong position to effect decisive change. Their key challenge in 2025 will be to communicate a more compelling business case for UK Plc, which ensures end-of year pessimism does not become a self-fulfilling prophecy. In areas like planning reform, industrial strategy, relationships with our main trading partners and financial regulation, the government should make growth its priority and seek to offer business a future it can believe in.”

The full Institute of Directors paper, Annual Policy Outlook: Trends, risks and opportunities for business in 2025, can be downloaded here.

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The IoD supports directors and business leaders across the UK and beyond to learn, network and build successful, responsible businesses.
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