Douglas Smith Prize entry from Jonathan Millman

How will Brexit affect the UK’s public affairs industry?



Brexit has rocked the nation, but it provides a wealth of opportunities for our sector. Here are nine reasons why Brexit matter.

1. Growth

There is no doubt that Brexit has created uncertainty in the markets, including a falling pound and rising inflation, which has commercial implications for businesses of all shapes and sizes.

Businesses have required help navigating the readjustment of UK politics following the referendum and understanding the potential implications of Brexit for their sector. Brexit presents opportunities to engage in the debate and shape its process, especially as cabinet ministers seek input from industry.

The importance of public affairs has therefore risen accordingly, and some consultancies have already announced projected revenues are to jump up to 40 per cent.

2. Innovation

The public affairs industry will – and in some cases already has – have to innovate in order to provide the services that businesses require post-referendum.

Several consultancies have set up dedicated teams that provide counsel on the implications of Brexit on businesses and sector specific policy issues that stem from it.

This will become increasingly important as the government seeks to stabilise the Brexit narrative and restore business confidence.

3. Big name hires!

Brexit meant an end of an era for David Cameron and his ‘chumocracy’, as overnight many found themselves without a job. Private Eye has already highlighted some of the biggest names that have made the transition from government to public affairs, including but not limited to:

• Craig Oliver, former Director of Communications for David Cameron – Teneo;
• Ameet Gill, former Director of Strategy for David Cameron – co-founded Hanbury Strategy;
• Lord Maude, former UKTI minister, joined Covington and Burling LLP’s government affairs practice;
• Adam Atashzai, Deputy Political Director for David Cameron – Finsbury

4. Increased scrutiny of the industry

The Register of Consultant Lobbyists has previously been criticised for not providing sufficient oversight of the industry. Right now, given Brexit and its contribution to the rise in lobbying activity the media will likely scrutinise the industry more, including the effectiveness of the lobbying register and Acoba.

5. Recognition of the industry’s value

As the turmoil that surrounds Brexit continues, businesses will begin to recognise the value of public affairs. For example, the most read stories on the FT are increasingly related to Brexit – an indication of the importance that those in business consider it to be.

Companies are also recruiting internal hires and consultancies en-masse to advise on, and implement, their Brexit government affairs strategies.

6. Employment opportunities

Graduates are likely to become more aware of what a career in public affairs entails, and begin to consider it as a financially viable and enthralling career option.

Companies will also add to their public affairs expertise - Standard Life is just one example of a FTSE 100 firm doing this.

7. Competition from other industries

Although the future seems bright for the industry, it will need to remain on the front foot as other players, such as law firms, begin to set up Brexit units and up-sell their expertise.

8. Scottish independence, maybe?

Brexit has prompted Nicola Sturgeon to announce a new independence referendum bill. This underlines how Scotland is a distinct market for public affairs, which will be transformed further because of Brexit.

Perhaps consultancies might decide to relocate staff from Brussels to Edinburgh?

9. Brexit means Breakfast

The Welsh Tory leader may have confused Brexit with breakfast, however it is apt considering Brexit will likely lead to an increase in new business meetings being conducted over sausage and egg. Pass the HP sauce please!