How to fix UK Plc and unlock the next wave of growth

The UK is not short of ideas, talent or ambition. Yet when it comes to turning promising companies into global leaders, something is missing. That is the central tension explored in the Business Leader Podcast episode asking a deceptively simple question: how do you fix UK plc?

At first glance, the problem is clear. Economic growth remains sluggish. The UK economy expanded by just 0.9 per cent in 2024, compared with 2.8 per cent in the US, while on a per capita basis it actually shrank by 0.1 per cent. Productivity tells a similar story, falling 0.8 per cent year on year despite a modest quarterly uptick.

But beneath those numbers lies a more specific challenge. As Business Leader editor-in-chief Graham Ruddick puts it, “the UK is a great place to start a business but it is not a great place to turn a promising business into a large company”. Less than one in 20 mid-sized firms make that leap.

The reasons are complex, but a recurring theme throughout the discussion is culture. Deliveroo founder Will Shu’s view, cited in the episode, is that this is not primarily about tax or policy, but about mindset: “seeing other people succeed, seeing other people fail and being okay with it”.

That tolerance for risk, and failure, remains uneven in the UK. There is still a tendency to build a successful business and exit early rather than push on. As Business Leader senior correspondent Dougal Shaw observes, many founders aim for a life-changing sale rather than long-term scale, creating what he describes as an “event horizon” where ambition stalls.

Role models matter here. In markets such as the US, visible success stories help create a virtuous cycle of founders building, exiting and starting again. In the UK, that cycle is emerging, but remains less embedded. Deliveroo alone has seen “50 people go on to found their own business”, illustrating how momentum can build when experience compounds.

Access to finance is another friction point. While the UK attracts significant venture capital, second only to the US and China, much of it is concentrated at the earliest stages. Later-stage funding remains thinner, creating a gap just as businesses begin to scale.

At the same time, investors have become more cautious, demanding profitability and financial discipline before committing capital.

Skills add further complexity. There is strong demand for digital capabilities, from software development to AI, but also for leadership and operational experience. As Shaw notes, companies often struggle to find people who can take a business from “100 employees to 1,000”. Technical expertise alone is not enough; communication, resilience and decision-making are equally critical.

Yet perhaps the most overlooked factor is energy, both literal and metaphorical. The discussion touches on the role of infrastructure and low-carbon innovation in unlocking productivity. If the UK can lead in areas such as battery technology and renewable energy, it could create the conditions for sustained growth across industries.

Ultimately, the conversation returns to leadership. Strategy, funding and skills all matter, but they are shaped by the people at the centre of the business. Great leaders, it is argued, do not simply analyse problems, they act. As one quote highlighted in the episode puts it, the real differentiator is “somebody who says, let me take care of that”.

Fixing UK plc will not come from a single policy or initiative. It will come from a shift in mindset, one that embraces risk, backs ambition and focuses relentlessly on execution.