Leading British and American businesses have expressed renewed confidence in transatlantic trade, business, and economic relationships, despite uncertainties due to upcoming national elections in both the UK and US.

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The fourth annual Transatlantic Confidence Index from BritishAmerican Business (BAB) and Bain & Company reveals that US companies’ confidence in the UK as a business destination has stabilized in 2024, following two years of sharp declines caused by political and economic turmoil in Britain. UK companies’ confidence in the US business environment also remains high, resulting in a combined positive sentiment on the transatlantic economic corridor. The index shows a slight increase to a score of 7.1 out of 10, up from 7.0 last year.

BAB and Bain report that investors on both sides of the Atlantic are planning to maintain or increase investment levels in both countries, indicating a calming of conditions after recent disruptions such as the Covid-19 pandemic and rising business costs. There is cautious optimism about the potential productivity boost from AI.

However, stable future policies for business are seen as critical. Survey respondents emphasized the need for policy stability and stronger economic collaboration between the two countries, rating the importance of stable policies at 8.0 out of 10 for UK respondents and 7.4 for US respondents. Concerns over political stability and regulatory certainty in the US, and political stability and talent mobility in the UK, were highlighted.

Tax competitiveness emerged as a high-priority concern, with 70% of US companies citing the UK tax environment as a top priority due to recent corporate tax increases. Similarly, UK businesses trading in the US are concerned about the upcoming review of the Tax Cuts and Jobs Act.

Access to capital and talent were identified as key strengths for both markets. UK investors highlighted US innovation and R&D incentives, while American investors in the UK pointed to R&D incentives as a crucial strength.

There is strong support for a strengthened UK-US trading relationship, with 61% of respondents advocating for a full free-trade agreement (FTA). US companies in the UK and UK companies in the US rated the importance of greater economic collaboration highly, at 8.4 and 8.6 respectively.

Duncan Edwards, CEO of BritishAmerican Business, emphasized the importance of increased economic collaboration and policy stability, while Jonathan Frick, partner at Bain & Company, highlighted the critical foundation of the UK-US corridor for future prosperity amid unprecedented disruptions.

Overall, the 2024 Transatlantic Confidence Index shows strong confidence in the transatlantic corridor, with businesses advocating for stable policies and increased economic collaboration to navigate current challenges and foster future growth.