Why is public affairs important? Because politics will not ignore your business

Businesses may choose to ignore politics, but politics will not ignore them. Public affairs helps organisations prepare for the major commercial and reputational risks created by government decisions and parliamentary scrutiny. PR & Public Affairs Specialist, Mike Nicholls, explains how specialist support helps businesses act before policy decisions are finalised.

As The Marketing Pod's Public Affairs Specialist, it’s no surprise that I am an avid Westminster-watcher. I recognise, however, that many business leaders would quite reasonably prefer to leave politics to people like me and get on with running their organisations. The snag is that Westminster rarely returns the favour: its decisions reach into business plans and balance sheets whether or not a company follows the debate.

In this latest Parliament alone, the government has introduced 63 bills, alongside a steady flow of consultations, debates and select committee inquiries. Following all of it would be a full-time job, yet missing the development that matters can be costly. In heavily regulated sectors like energy or infrastructure, a policy decision can alter the economics of a project, while a select committee can turn an operational mistake into a full-blown reputational crisis.

What is a crisis? Find out on The Marketing Podcast

At The Marketing Pod, my job is to make sense of that activity for clients and help them engage while policy is still taking shape. You do not need to become a committed Westminster-watcher, but you do need someone watching Westminster on your behalf.

Is there still a place for lobbying?

Lobbying, public affairs, government engagement - practitioners will argue over the differences and nuances, but ultimately they refer to the practice of engaging government to shape policy in a particular way. The practice has not always enjoyed a reputation for transparency, with stories about closed-door access making some businesses wary.

Yet transparent, evidence-led lobbying plays a valuable role in policymaking by helping government understand how proposals will work in practice. The profession has reinforced that role through self-regulation, with clear standards designed to promote openness and accountability. Government engagement now sits firmly in the PR playbook, and its value is recognised beyond our industry.

For example, under B Lab's new standards, Government Affairs & Collective Action is one of seven topics companies must include to achieve the 'B Corp' certification, showing high standards of social and environmental performance. As a team that became a certified B Corp in 2026, The Marketing Pod welcomes the recognition that responsible businesses should participate in the democratic process.

What are the political risks for my organisation?

But why should businesses be politically engaged? What if they don't want to influence policy? The answer is that politics may come to you, whether you want it to or not. Select Committees - groups of MPs that investigate specific issues - illustrate this point rather brutally. Their inquiries and hearings can appear formal and archaic, but they can set the news agenda and place leaders under sustained scrutiny.

South East Water found this out in 2026. Following serious supply failures, its leaders were summoned before the Environment, Food and Rural Affairs Committee and gave a defensive, underprepared performance that did little to reassure MPs. The Committee subsequently published a scathing report declaring that it had no confidence in the chief executive or board and described the company as “devoid of proper leadership”. The morning after the hearing, committee chair Alistair Carmichael MP told BBC Radio that “the biggest risk the company faces is that [CEO] David Hinton stays in post”. It was a striking intervention, and events moved quickly. Within hours, company chair Chris Train, a utilities veteran with more than 38 years’ experience, resigned. Hinton followed a week later.

No communications strategy could repair the burst pipes or excuse the failures identified by MPs. Public affairs should never become a coat of polish for a substantive problem. But it could have better prepared the company leadership for what was to come. The lesson is that political scrutiny can rapidly become a leadership and reputation crisis, so organisations must account for their decisions honestly and with credible evidence. A select committee appearance is public and recorded; an unprepared performance can become the defining footage of a corporate crisis.

What are the political opportunities?

South East Water shows public affairs in defensive mode. Yet businesses often find their best opportunity much earlier, before a policy is settled or an issue reaches the headlines.

Public consultation offers one of the clearest openings. The government's consultation principles say departments should consult while policy remains formative, take responses into account and view formal consultation as part of ongoing engagement. A good response allows an organisation to explain how a proposed policy would work in practice and provide evidence for a better approach.

The British Industrial Competitiveness Scheme (BICS) provides a useful example. It has been through three public consultations to date and, after consulting on eligibility, the government expanded its scope by 40%, from 7,000 to more than 10,000 businesses. For businesses that successfully lobbied for their activities to be included, the financial value is clear: eligible firms will see their electricity bills fall by up to 25% from April 2027.

The Marketing Pod helped clients understand BICS as it developed, supported with government engagement and helped shape the scheme. None of that required an inside line to a minister. Knowing the right team and route into a department mattered, but the real value came from our understanding of what government was planning and presenting a clear case while policy remained open to influence.

Where do I begin with public affairs?

Good public affairs begins with intelligence. Monitoring the political process in Westminster and beyond is useful, but the most value comes when you have the support of a team that can translate political and regulatory developments into likely effects on an organisation and its reputation.

That political understanding should feed directly into PR strategies because political and media reputations move together. A committee exchange can lead the news within minutes, while media coverage can influence the questions MPs ask. An integrated approach uses the same evidence and an agreed position, adapted honestly for each audience.

Politics and policy affect us all, and it's vital that organisations are aware of what policy decisions are coming, what they mean, and what they can do about it. If you want to understand what is coming and make public affairs a purposeful part of your PR strategy, get in touch with The Marketing Pod's award-winning PR specialists today.