Lessons from Trump to make Britain great again
While American entrepreneurs feel the winds of optimism, British businesses remain trapped by regulation that is slowly strangling our economic potential. Donald Trump has shown it doesn’t have to be this way, says Simon Dolan
The world is bracing itself for a disruptive era of change, as Donald Trump prepares to take the reins of the world’s foremost superpower for the second time. His return to the White House signals the dawn of what promises to be a transformative era, marked by a focus on explosive growth and revival of innovation. Trump’s message is clear, this term will prioritise the economy, cut through red tape and champion the entrepreneurial spirit that underpins the ‘American Dream.’
Across the pond the picture is starkly different. While American entrepreneurs feel the winds of optimism, British businesses remain trapped by regulation that is slowly strangling our economic potential. The government’s recent challenge for regulators to devise “pro-growth” ideas fundamentally misses the point. There is no such thing as “pro-growth” regulation. If the UK is to remain competitive in an increasingly cutthroat global marketplace, it must learn from Trump’s playbook: strip away unnecessary barriers and empower businesses to thrive.
During Trump’s first term, his administration demonstrated what real regulatory reform looks like. The bold initiative of cutting 8.5 regulations for every new rule introduced slashed compliance costs by an estimated $50bn annually. The benefits of this are still being felt, with the financial sector seeing significant gains in anticipation of Trump’s second term. JPMorgan alone enjoyed an 11.5 per cent stock price surge following Trump’s re-election.
The widening gap between the dynamism of America and the inertia of the UK is becoming impossible to ignore
This isn’t groundbreaking stuff. Reducing barriers makes it easier for businesses to start operate and grow. Consider the retail sector, where complex licensing and business rate regulations impose massive burdens that actively deter business, reduce competition and stifle growth.
However, the UK continues to ignore this and mire itself in counterproductive bureaucracy. A 2022 government survey on business attitudes towards regulations found that large businesses are spending a staggering 22.3 days each month grappling with compliance issues, leaving a mere 8.7 days for actual business operations. These aren’t just numbers, they represent real opportunities missed, stifled innovation and ventures that will never see the light of day.
By no means should we do away with the rule book altogether, but we need to acknowledge that true growth requires accepting some risk. The government must stop asking regulators to square the circle with “pro-growth” regulation and instead we need comprehensive regulatory reform legislation. This should mandate the removal of an existing regulation for each new one introduced, require thorough cost-benefit analysis for new rules, establish fast-track approval processes for startups, and set clear timelines for regulatory decisions.
Trump’s growth-first mindset
The rewards of embracing this growth-first style mindset are clear. States like Utah, with its low corporate tax rate of just 4.55 per cent, have cultivated a thriving ecosystem for startups and investors. Utah’s privately held startups boast valuations of 70 per cent higher than the national average – a testament to the power of fostering a pro-business environment. If the UK were to adopt a similar approach, it could create a wave of startups, raising job creation, boosting consumer spending and restoring confidence in the economy.
Instead, the UK government continues to stand in the way of progress, often with well-intentioned but misguided policies. Take the construction industry, where developers face years of delays navigating planning permissions. These delays cost millions, dissuade investment and ultimately stall projects that could boost local economies. Similarly, the technology industry is held back by environmental regulations which impose significant compliance costs and operational restrictions, leading to entrepreneurs often choosing to relocate their ventures elsewhere.
Trump’s policies offer a blueprint for how to achieve this growth driven economic boost. His administration’s relentless focus on deregulation, tax incentives and pro-business initiatives demonstrates what is possible when governments prioritise growth over bureaucracy. The UK has a choice to make; cling to the false security of red tape or embrace the bold reforms needed to unleash its entrepreneurial potential.
As the US charts a course toward economic renewal under Trump, the widening gap between the dynamism of America and the inertia of the UK is becoming impossible to ignore. The government must stop trying to micromanage business through ever-more complex regulation and instead remove barriers and trust the market to drive innovation and growth. Only by getting out of the way can they allow British business to thrive in the global marketplace.
Simon Dolan is a British businessman and author of Trump: The Hidden Halo”