Category Archives: Business

Cleared for take-off? The policies shaping the UK drone industry

The government has set itself the ambitious goal for becoming the fastest growing economy in the G7. This lofty ambition sits at the heart of the government’s agenda and is central to its industrial strategy – a 10-year plan to increase business investment in the industries of the future. The drones sector has been identified as a frontier industry, with the government clearing a flightpath for the UK to be a world leader in drone innovation and technologies.

Driving this move is the extraordinary economic potential of drones. A recent PwC report states that the sector could contribute £45 billion to the UK economy and support 650,000 jobs by 2030. Further analysis undertaken by Frazer-Nash consultancy for the government suggests that with public support and a shared strategy and ambition between government and industry, the sector could have contributed £103 billion by 2050. Together, these findings demonstrate how collaboration between government and industry can lead to a thriving drones sector which can drive growth and innovation across the UK.

Regulatory challenges

For this growth to be unlocked, the government must work to address regulatory challenges that constrain innovation. Across government, companies face a range of overlapping rules that can slow commercial deployment and limit investment. One of the largest constraints on the sector is the requirement to keep the drone within the line of sight of the operator. Additional health and safety regulations enforced by the Civil Aviation Authority (CAA) also prohibit drones being flown within a 50m radius of people. This constrains the range of operations drones can perform, limiting their use in many areas such as delivery, infrastructure inspection, and large-scale surveying, particularly in urban areas.

The Health and Safety Executive (HSE) also limits the growth of drones operating in the agricultural sector, with the HSE requiring companies to get approval for almost all aerial spraying. The HSE states that there is a 52-week processing time for drone applications, which will inevitably undermine the innovation and adoption of drones in the agricultural sector.

All these affected areas are where drone technology offers incredible commercial potential, so overcoming these regulatory barriers will be key for businesses looking to unlock growth in the drones sector.

These challenges are not insurmountable and government and industry collaboration is already underway to tackle them. The Regulatory Innovation Office (RIO) is leading a series of pro-innovation reforms for the drones sector, including the introduction of a single, standard risk assessment process to cut approval times for complex drone operations. They are also working on expanding the CAA’s atypical air environment policy, which enables the use of drones Beyond Visual Line of Sight (BVLOS), with the ROI providing £8.9 million in funding for innovative projects that will test the effects of new BVLOS standards. The ROI has also worked with the HSE to make it legal for drones to spray slug pellets, which is a major step forward for agricultural drones businesses.

Public concerns

Drones businesses also face challenges of public perception. The research done by Frazer-Nash consultancy estimated that without public support, the size of the sector will be £65 billion by 2050. That represents a £38 billion reduction in the sector compared to the scenario with public support. Given the incredible economic value that lies in public support, addressing public concerns, such as the use of drones for criminal activities, are of great importance to the sector and government to ensure businesses reach their full potential.

The government is already thinking about innovative solutions to the public perception challenge. In November 2025, the government launched a technology challenge which will encourage industry to develop innovative systems capable of detecting drones designed by criminals to evade current detection methods. If successful, this challenge will help the government intercept drugs being delivered by drones into prisons.

The government’s willingness to cut red tape and find innovative solutions to the challenges facing the sector creates opportunity for the sector. However, it remains essential for companies to engage with the government, both to push further on reducing overly prohibitive regulation and to address public concerns surrounding drone safety. By doing so, businesses can play a central role in shaping a regulatory landscape that supports innovation, builds public trust, and cements the UK’s position as a global leader in drone technology.

If you’d like to discuss drones and the wider political landscape in more detail, please reach out to Jacob on Jacob.walsh@gkstrategy.com

 

 

 

 

 

Why building 1.5 million homes isn’t as simple as it sounds….

Building 1.5 million new homes over the course of this parliament was a flagship policy commitment in Labour’s general election manifesto. The recently appointed housing secretary Steve Reed initially echoed the government’s ambition with the slogan ‘build baby build’. Reed has gone onto say the rate of construction is ‘unacceptable’ and has promised to increase the pace of housebuilding to deliver on Labour’s ambitious pre-election pledge.

The housing industry is facing a series of skills shortages. The Office for National Statistics warned that there are over 35,000 job vacancies in construction, many of which remain unfilled due to a lack of qualified workers. The Construction Industry Training Board (CITB) has stated that 61,000 new workers are needed each year to meet the government’s housebuilding target. Ministers have heard the calls of the CITB and in March announced that they would be investing up to £600 million to support training in the construction sector. This includes £165 million to help colleges deliver more construction courses and £40 million to support new foundation apprenticeships (launched in August). The £40 million includes an incentive of £2,000 per foundation apprentice hired and retained by employers which has been widely welcomed by the construction industry. The government has signalled that there could be continued investment, although this is likely to be restricted due to the current pressure on the public finances.

Another hurdle is the planning process. The number of new homes built in the UK has fallen during the government’s first year in office. Ministers have conceded there are ‘excessive rules’ delaying construction. The government is attempting to streamline the planning process through the Planning and Infrastructure Bill which is currently before parliament. Ministers claim that the bill will create a more decisive planning system and increase the amount of land available for developers. Whilst the bill is a step in the right direction, the impact is unlikely to be immediate.

Despite these barriers, there are some clear opportunities for the construction sector. Increases to training investment, new apprenticeships and the promise of reforms all signal the government’s continued prioritisation of the sector. The changing environment and the development of a potential second planning bill present stakeholders with a wide range of opportunities to engage with policymakers, shape regulation and improve relations between the government and sector.

Making the most of party conference season

GK Strategy is pleased to share its guide to effective engagement with policymakers during party conference season.

Insight from the GK team on making the most of party conferences can be accessed here: https://gkstrategy.com/wp-content/uploads/2025/09/Engaging-at-Party-Conference-Season-GK-Strategy-September-2025.pdf

How can agri-tech prepare for the next parliamentary term?

MPs might be on their summer break but what can you be doing to prepare for the next parliamentary term?

August in Westminster is a quieter time. Government grinds to a halt as MPs return home to continue business back in their elected constituencies. This downtime in the political calendar grants companies a rare breathing space – and the opportunity to turn attentions to resetting government relations plans and preparing for the parliamentary year ahead.

Before parliament returns on 1 September, businesses should be taking the time to think about how to best prepare for the government’s second year in office. Although parliament is in recess, there’s still plenty we can be getting on with to develop an effective strategy and work towards policy objectives. From strengthening stakeholder engagement strategies to assessing regulatory risk, the planning taken now will make the crucial difference between scrambling to adapt to policy announcements and confidently navigating the next wave of policy decisions.

So, what should businesses be thinking about during these summer months?

Engaging with the civil service

While parliament draws to a close over the summer, the civil service remains central to ensuring the smooth operation of public services. Officials continue to work on the implementation of government policies, running consultations, and preparing for the legislative activity that is set to resume in the autumn.

For businesses, the absence of parliamentary activity offers a valuable opportunity to take stock of their existing relationships with civil servants, assess the strength of those channels of communication and identify where they could be expanded. Civil servants tend to be a bit quieter over summer too, so it’s the perfect time to catch up over a coffee in preparation for the year ahead.

Monitoring Parliamentary Committees

Similarly to the civil service, parliamentary committees continue their business while MPs are away. Staff continue to work behind the scenes, launching calls for evidence and meeting businesses in their sectors of interest. In recent weeks, we’ve seen a flurry of committee activity affecting the agri-tech space.

The Science, Innovation and Technology Committee have launched an inquiry into innovation and global food security, actively seeking to hear from agri-tech businesses about how new agricultural practices can catalyse food production. Each Committee’s reports, which are written using the evidence submitted to the inquiry, land directly on ministers’ desks – offering businesses the space to communicate exactly what they need from government to succeed.

Can we also add the health one here? One of the focuses of the health one is healthy food and many of the agri-tech businesses focus on improving nutritional content e.g. precision breeding.

Preparing for Party Conferences

The annual party conferences mark a significant moment in the political calendar. Taking place over September and October, each conference allows parties to set their political agenda and rally support from members and industry. For Labour as the governing party, this means actively listening to and engaging with businesses of all sizes to better understand their priorities, concerns, and capacity to contribute to the party’s core objective of economic growth. With agri-tech flagged as a frontier industry within the government’s industrial strategy, the party conference will provide a useful avenue for businesses within the sector to raise their profile with government.

For opposition parties, conferences are a critical space for developing and refining alternative policies that can challenge the government’s agenda. Without the responsibility of running departments day-to-day, opposition parties can use this time to strategise ideas that could credibly form the backbone of their next election manifesto.

Meeting with MPs

Although MPs are back in their constituencies during recess, they are not on officially out of office. During this time MPs turn their attentions to local priorities, such as meeting constituents, visiting community projects and engaging with businesses in their area. Businesses, and especially those developing cutting edge agricultural technology, should think about inviting MPs to visit their sites to see first-hand innovation in the sector. Demonstrating tangible contributions to local employment, food security, environmental sustainability, or economic growth can help MPs see how your business aligns with their constituents’ interests and supports the government’s wider priorities.

Building and strengthening relations with MPs is at the core of effective political engagement. An MP who understands your business and believes in its potential can be a powerful advocate by championing your work in parliament or connecting you with relevant ministers and officials.

Although the political pace of the parliamentary summer recess might feel slower, this is no time for businesses to wind down. Whether through strengthening relationships with civil servants, preparing for the party conference season, or engaging directly with MPs in their constituencies, the weeks remaining weeks until 1 September grant businesses the time to reassess their political engagement. Using this time productively will enable businesses to position themselves as constructive partners to government, trusted to feed into the conversations that will shape Labour’s next year in office and beyond.

Trump Administration deregulatory push yields industry wish list for rule rollbacks

By Erin Caddell, Anchor Advisors LLC – A GK Strategy partner firm

Amidst the mile-a-minute pace of activity in the Trump Administration’s first six months, the Office of Management and Budget (OMB)’s April 11th posting of Federal Register document 2025-06316, “Request for Information: Deregulation” did not exactly make for scintillating tabloid reading. Yet the effort initiated by OMB’s memo is likely to spark substantial regulatory activity by a number of federal agencies starting this fall and into the remainder of Trump’s current term that will be highly impactful across a range of industries in the U.S.

OMB’s request for information (RFI) was prepared in response to an Executive Order signed by President Trump on April 9th to repeal “[u]nlawful, unnecessary and onerous regulations”. The order notes that the U.S. Supreme Court has issued a number of rulings in recent years limiting the power of federal agencies, and asks commenters to identify regulations now inconsistent with these decisions.

Companies and their trade associations were only too happy to respond to OMB’s request. The RFI received nearly 8,500 comments during the 30-day window (though some were from individuals calling for caution against moving too quickly to deregulate). OMB and federal agencies will likely begin the process of repealing or amending certain rules cited in the comments starting this fall. Importantly, the executive order notes that agencies may attempt to rescind the rules in question without the traditional notice-and-comment period required for formal rulemaking, which can add months if not years to the process. The order cites a provision in the Administrative Procedures Act (APA) providing a “good cause” exemption to traditional rulemaking requirements if the original rule is “impracticable, unnecessary or contrary to the public interest.” Any attempts to circumvent the rulemaking process would be met immediately by legal challenges (interestingly, the Mortgage Bankers Association, an influential trade association, argued that agencies should continue to utilize the notice-and-comment process, as abandoning this function could rob industry with a key means of providing input). But even if ultimately overturned, companies would have to make accommodations to assume a proposed repeal could become effective, particularly if intermediate courts support the Administration.

So what does Corporate America hope to deregulate? Anchor reviewed a representative sample of comment letters submitted by trade associations representing a range of industries. We summarize in the table below recommendations from six of these comments. Taken together, the missives describe their authors’ frustrations with the blizzard of rulemaking under the Biden Administration and cite hundreds of regulations they believe should be repealed or revised in the name of spurring economic growth and reducing the administrative burden.

Select Industry Association Responses to OMB Deregulation Request for Input (RFI)

Organization Rule cited Agency(s) Year Commenter’s rationale
Mortgage Bankers Association (MBA) Adoption of energy efficiency standards for new construction of HUD- and USDA-financed housing HUD, USDA 2024 Will drive up costs for new single-family and multi-family construction; 30 states still operating under prior standard enacted in 2009; shortage of inspectors trained on new standard.
National Multifamily Housing Council/National Apartment Association Floodplain management and protection of wetlands HUD 2024 Imposes substantial compliance costs on homeowners without robust data on actual risk reduction benefits nationwide.
Information Technology and Innovation Foundation Rule requiring minimum of two crew members on most US freight and passenger train journeys. Federal Railroad Administration 2024 Lacks foundation in safety data; is driven by labor-union pressures; automated braking systems and other technological advances intended to mitigate accidents caused by human error.
American Petroleum Institute (API) National Ambient Air Quality Standards (NAAQS) for Particulate Matter EPA 2024 In 2024, EPA mandated a lowering of maximum air particulate matter – a measure of air quality – of no more than 9.0 micrograms per cubic meter vs. 12.0 previously. API argues no new scientific evidence had emerged to warrant such a reduction. API argues the new standard will limit economic growth. The group supports revising, not repealing the rule.
Small Business Low Risk Coalition (group of manufacturing/industrial trade associations) Multi-sector general permit rules for stormwater discharge from industrial facilities EPA 2021 Argues 2021 version of standard was issued in overly hasty fashion relative to the 2015 version, which received lengthy multiagency review. The group argues that the 2021 permit rules added costly, unnecessary analytical monitoring requirements for many industries.
American Hospital Association (AHA) Remove telehealth originating and geographic site restrictions within the Medicare program. CMS Various Currently, Medicare patients in urban or suburban areas do not have the same access to telehealth services covered by Medicare as those in rural areas; in other cases patients must be in a clinical setting to receive telehealth services, which defeats their purpose.

Source: Regulations.gov

What does this mean for investors and companies? The OMB request for information and its many industry responses are a sign that deregulation – obscured thus far by the trade war, the immigration crackdown and the many controversies that follow the current Administration – will nonetheless be a key theme for Trump’s second term. The fall Unified Regulatory Agenda, a document published by presidential Administrations twice a year that details each federal agency’s priorities for the coming 12 months, will provide clues as to how the Administration has translated OMB’s fact-finding mission into agency priorities.

Given the inclination of Trump, Vought and those around them in the Administration, OMB is likely to push ahead with many of the deregulatory recommendations put forth in the comment letters. Opponents will attempt to counter these efforts through the courts, with their allies in Congress, and by attempting to influence public opinion. But as with many other aspects of the Trump Administration, critics will face the challenge of fighting many battles at once.

History also shows that deregulation can be a double-edged sword for the private sector. The Global Financial Crisis of 2007-08, which followed a long period of loosened of the U.S. financial services industry, is the most striking recent example. But more recent cases like the collapse of Silicon Valley Bank in spring 2023 demonstrate the dangers of lighter-touch regulation. In that case, rule changes reducing capital and liquidity requirements for banks of Silicon Valley’s size encouraged the firm to increase its risk profile, making the firm highly vulnerable to a rise in short-term interest rates. Companies must do more on their own to protect their businesses, customers and employees at times when the pendulum swings toward deregulation. Ethics committees, ombudsmen and similar compliance measures (Anchor and its partners can help with this!) can serve companies well at times like this when animal spirits are running high – on Wall Street as well as in Washington, D.C.