With a cabinet and board of trade filled with inexperienced members, the government requires more than just investment bankers and youthful advisors to foster economic growth.

For strategic business expansion, it is vital to harness extensive, hands-on expertise in both domestic and international spheres. While the economists, attorneys, and bankers who frequently advise ministers discuss historical trends and theoretical insights, seasoned chief executives and company founders offer practical solutions to the challenges businesses face, ranging from regulatory issues to unexpected events.

It is critical to involve these experts, not only from large corporations but also from small and medium-sized enterprises (SMEs), in providing guidance to the government, aiming to enhance the UK’s business landscape for entrepreneurs and investors.

This does not imply that unrealistic regulations should be imposed that complicate hiring processes. For instance, last week’s proposal to make flexible work arrangements the default for most employees. Business Minister Jonathan Reynolds claims that remote work increases productivity, yet recent findings suggest otherwise. A report from Citi, released concurrently with his proposed workplace reforms, indicated that productivity in remote-working Britain has dropped to levels reminiscent of 1850s Victorian England, lagging behind both Europe and the US.

Essential tasks require physical collaboration, allowing teams to generate innovative ideas and foster competitive dynamics.

Chancellor Rachel Reeves asserts her commitment to this by being present in her office daily to set a positive example. In contrast, the public sector’s hesitance to return to office work sends a detrimental message and contributes to a decline in workforce effectiveness and overall economic growth.

This lack of structure and community hampers new graduates as they enter the job market. Young professionals benefit from observing senior colleagues, participating in conversations, and sitting in on meetings to acquire necessary skills through direct experience. The loss of nuanced decision-making and negotiation is concerning, as many younger employees have not had the chance to witness these skills in action; remote communication tools often amplify louder voices over measured discourse.

While exceptions exist, it is clear that virtual alternatives will not sustain the hospitality industry, nor will online services revive struggling local retailers. City and town centers require a steady influx of office workers to rejuvenate, and the commercial real estate sector is in urgent need of revitalization.

Although employees in sectors like retail and hospitality have returned to work, many office staff cling to remote work as an entitlement. They cannot have the best of both worlds.

Isolated work environments negatively affect mental health across all age groups, particularly impacting the younger workforce. Prolonged remote work may dampen the ambition and motivation necessary for driving growth, encouraging a sedentary and solitary approach where mediocrity becomes the norm.

With 40 percent of young workers facing anxiety, a tougher approach may be necessary. Finding capable staff ranks among the top challenges for businesses after ensuring cash flow. The high standards, intellectual curiosity, and tenacity required for thriving companies are already scarce, and the government’s proposed modifications to employment law—such as reducing the two-year period for protection against unfair dismissal to just one day—are set to exacerbate these difficulties.

Onboarding new employees demands time and resources, instilling rigor into the hiring process. Nonetheless, hiring mistakes are inevitable. While the government has instituted a nine-month probationary period, extending it to 12 months would be more beneficial.

Furthermore, implementing “day one” rights for maternity, paternity, and long-term sick leave could hinder the ability to filter out less dedicated employees before they exploit these benefits, placing substantial strain on business growth and finances. In response, employers may need to downsize and outsource back-office functions abroad, resulting in greater reliance on temporary self-employed workers for short-term tasks, further stifling economic growth.

For businesses investing in talent, it is essential to have a safety net that reassures them against potential pitfalls or abuses of the system that could jeopardize their operations.

To attract significant private investment for the development of British enterprises, a carefully structured and appealing risk-reward dynamic for investors is crucial. While the UK has established some positive frameworks, such as the Enterprise Investment Scheme for startups and growth-stage companies—though it requires adjustments—larger firms looking to expand internationally necessitate financial backing that surpasses these levels. Such support will not materialize unless the investment environment is rendered as appealing and low-risk as possible.

Additionally, increasing capital gains tax will negatively impact the investment climate, consequently hampering investment in British companies and potentially driving growing enterprises to relocate to more investor-friendly territories.

Unless this government heeds the counsel of those with real business experience, the path ahead may lead to prolonged economic stagnation.

Joanna Jensen is an entrepreneur, angel investor, non-executive director, and chair of the Enterprise Investment Scheme Association.