There are several challenges associated with the UK market, many of which stem from the UK’s decision to leave the European Union, which the UK formally exited in 2021. Establishing new regulations for the UK that differ from the EU yet align with the UK’s priorities has been challenging across a number of areas. As a complicating factor, the UK elected the Labour Party in the 2024 general election, unseating the Conservative “Brexit” party in favor of an administration that promises to bring the UK closer to the EU after the intervening years post-Brexit saw increased UK-EU tensions. However, the main challenge that the Labour party has struggled with, which has tangibly affected business confidence and foreign investment in the UK, has been in growing the UK’s sluggish economy. While the UK economy showed positive signs with Q2 2025 GDP growth, overall growth forecasts remain around 1.2% for 2025. High inflation (3.8%) and a shrinking workforce are key economic challenges. The Labour government has sought to rejuvenate the economy with a series of long-awaited sector-specific strategies and an overarching Industrial Strategy; however, a combination of burdensome regulations, increased taxes, and dwindling investment by foreign companies continues to plague the government’s aspirations for growth.