New research reveals “understanding gap” between business leaders and government and how organisations can better engage with civil servants

Almost a third of business leaders in the UK and Ireland believe there is a “significant” understanding gap between government and business, according to new research published by Fenton Fitzwilliam today.

The report reveals that the traditional approach taken by businesses to prioritise face time with senior Ministers and Secretaries of State has resulted in a lack of detailed understanding among civil servants of the critical issues facing industry.

Conducted by Censuswide, the study surveyed business leaders and civil servants across the UK and Ireland, revealing that 64% of business leaders believe elected politicians understand their sector better than civil servants, with 34% of civil servants agreeing.

Commenting on the findings, Natalie Buxton, Managing Director of Fenton Fitzwilliam UK, said: “Our research reinforces the core reason Fenton Fitzwilliam was founded, to ensure businesses are understood, not just heard. It reveals a clear understanding gap between business and government, which is most acute within the civil service. This audience is vital in the shaping, development and implementation of policy, so can’t be overlooked.”

A mismatch on the biggest challenges facing industry

The research highlights a mismatch between civil servants and business leaders on the biggest issues facing the private sector, compounded by differing expectations about how to address them.

Tax and business costs were among the leading concerns for business leaders across both the UK and Ireland, with almost a third highlighting them as the biggest challenge facing their business in the next 12 months. However, civil servants deemed these among the least important issues. Civil servants also downplayed supply chain issues for business, instead citing planning delays as among the biggest challenges.

These findings point to a gap between policy intentions and the realities businesses face when putting policy into practice. Moray Macdonald, CEO of Fenton Fitzwilliam, said: “Our research highlights a gap between the intention of policy and the reality of implementation. Business has an important role to play in explaining the real-world implications of policy, in terms of time, cost and delivery.”

When it came to barriers to productive engagement, more than a quarter of UK civil servants cited constant policy change, potentially highlighting the impact of unclear and inconsistent political rhetoric over the last decade.

Civil servants rely on direct meetings and even AI over top-tier media when researching companies

Traditional public affairs tactics, such as direct industry communications and meetings, remain effective. However, social media and generative AI tools were found to play a growing role for civil servants researching specific companies. Surprisingly, top-tier media is used by less than a third of civil servants when reading about wider sector issues.

The findings suggest businesses need to look beyond traditional engagement channels to ensure their perspectives reach the people shaping and implementing policy. Natalie Buxton advises: “The tools and channels businesses prioritise to engage with government need to be reviewed. While 1:1 meetings and consultation responses are key platforms for influence, so too is the wider ecosystem, from social media to generative AI.”

Trade bodies and fellow civil servants are among government's most trusted sources

In the UK, 35% of civil servants cite their peers as the most trusted source of information when forming opinions on issues, compared with just 28% of Irish civil servants. In Ireland, trade bodies are the most trusted voice for 34% of civil servants, reinforcing the strength of industry bodies.

These findings underline the importance of understanding not only which channels government uses, but also which voices it trusts. Effective engagement requires businesses to communicate through the right channels, provide relevant evidence and explain the practical implications of policy in ways that resonate with those responsible for its development and implementation.

Despite the understanding gap, the research points to opportunities for more productive engagement. Almost 70% of business leaders agree that engagement with government improves policymaking, alongside 42% of civil servants.

Moray Macdonald said: “The study includes many reasons to be optimistic. Almost 70% of business leaders agree that engagement with government does improve policymaking and 42% of civil servants agree. Clearly there is a positive role that business can play, however businesses must do better in how, where and when they engage with government. Opening doors to civil servants and politicians is no longer enough. Real influence depends on what you bring through it.”

Fenton Fitzwilliam commissioned the research to examine what makes business engagement with government genuinely effective. The findings are published in full in the new report, Not Just Heard: Closing the understanding gap between business and government, available here.

Fenton Fitzwilliam has teams operating in Dublin, London, Glasgow and Brussels. It’s part of Paritee, an international network of specialist communications consultancies.