The UK Government is missing out on billions in potential savings by failing to engage purpose-driven businesses in solving national issues like unemployment and mental health, according to a new report by charity ReGenerate.
In fact, 77% of UK businesses, including Greggs, Greene King, Octopus and Olio, say they want to do more to help solve Britain’s social and economic challenges, but government inaction is holding them back. Despite the mounting pressures facing the Treasury, over half (55%) of business leaders feel their offers to help are being ignored, the report reveals. Meanwhile, nearly two-thirds (64%) say they struggle to engage with government, citing a lack of clear contacts or departments to work with. For micro businesses, which make up 21% of UK businesses, this figure rises to 68%.
“If the government is serious about fixing the enormous social and environmental challenges we face in this country, then they urgently need to step up to unleash the full potential of the UK’s businesses,” stated Tessa Clarke, Co-founder and CEO of Olio.
BUSINESS ENGAGEMENT CRUCIAL
The report, titled “Partnering for Mission Delivery: Unlocking the Power of Business,” outlines four key reasons why business must be at the centre of national strategy:
- Scale: UK businesses generate £5.3 trillion in turnover and employ 27.8 million people—an untapped powerhouse for social impact.
- Innovation: Businesses can rapidly develop scalable solutions to challenges from affordable housing and jobs to healthcare and energy.
- Growth: Purpose-driven businesses grow faster, with many experiencing over 10% annual growth.
- Willingness: A striking 77% of UK businesses want to play a bigger role in solving national problems.
OFFICE FOR THE IMPACT ECONOMY
To unlock this potential, the report calls for a new Office for the Impact Economy within government, a central unit to coordinate efforts and foster public-private collaboration. “There is a huge amount of power in businesses to solve key social and environmental challenges…,” explained Greene King’s Graham Briggs. “To inspire broader societal change, we need a clear focal point within government that we can turn to. for support and to share expertise.”
The proposed office would:
- Develop a National Strategy for Purpose-Driven Business
- Embed a “partnership-first” approach across departments
- Act as a single point of contact for impact-focused companies
TACKLING SOCIAL CHALLENGES
ReGenerate’s findings come shortly after the government announced the creation of an Office for Responsible Business Conduct, a move many see as a first step in the right direction. “Businesses are making an impact in tackling social challenges despite the system, not because of it. A more joined-up approach from government could significantly improve society,” noted Ed Boyd, Co-founder and CEO of ReGenerate.
The report also aligns with recent government strategies:
- The Spending Review commits to partnership with the impact economy.
- The Modern Industrial Strategy supports purpose-led innovation and inclusive growth.
- The Trade Strategy introduces a front door for responsible business conduct.
BUSINESSES LEADING THE WAY
The ReGenerate report highlights 60 examples of UK businesses actively addressing national challenges, such as:
- Greggs, with its Fresh Start programme offering employment to returning citizens from prison.
- Olio, tackling food waste and inequality through community sharing.
- Octopus Group, driving green energy and social investment.
Roisin Currie CBE, CEO of Greggs believes that “empowering more businesses to do what we do will help bring more people into work and build stronger, safer communities.” Chris Hulatt, Co-founder of Octopus Group agrees: “The power of enterprise to positively affect people’s lives is phenomenal. Any means of working with government to further this agenda is deeply welcome.”
COLLABORATION IS KEY
The message from business is clear. They want to help. But government must meet this willingness with structured, strategic engagement.
Failure to act could undermine key national goals, from building 1.5 million homes to deploying 50GW of offshore wind. As the UK faces a cost-of-living crisis, workforce challenges, and mounting environmental threats, unlocking the power of purpose-led business may be one of the government’s most underused solutions.
Read the full report from ReGenerate here.
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