This week saw one of the most important — and perhaps surprising — events in corporate Britain’s annual calendar: the gala night of the Royal Horticultural Society (RHS) Chelsea Flower Show.
This traditionally marks the beginning of what, in English high society, is referred to as “the season.”
Coined as such by Debrett’s, the publisher and authority on society and etiquette, the summer social whirl was framed around the British royal family, which traditionally remained in London from April to July and from October until Christmas.
This meant that Britain’s ruling classes and key movers and shakers did the same — participating in balls, parties and court presentations.
These have largely now faded away, but what remains is a series of sporting and cultural events where the great and good continue to get together. Highlights include opera at the Glyndebourne Festival; flat racing at the Epsom Derby, Royal Ascot and Glorious Goodwood meetings; rowing at the Henley Royal Regatta; yachting at Cowes and, of course, tennis at Wimbledon.
All these events see gatherings of corporate chieftains, their bankers, lawyers and other advisors, but none brings together quite as many key figures, in a short space of time, as the Chelsea gala night: two hours of champagne (this year’s bubbles were supplied by Pommery), canapes and networking over displays carefully cultivated by hundreds of professional gardeners and landscape architects.
Tickets for the gala, which runs from 7 p.m. to 9 p.m. (the King, who is patron of the RHS, visits earlier in the afternoon), cost £620 ($827) while those for the gala dinner which follows on site go for £885.
Seeds are sown
Many of the City’s top bankers can be spotted there: recent attendees have included Anthony Gutman, co-chief executive officer of Goldman Sachs International; Russell Chambers, the former head of investment banking at Credit Suisse and Charlie Nunn, chief executive of Lloyds Banking Group. Leading business figures also regularly attend, including the likes of John Browne, the former chief executive of BP; Martin Sorrell, the advertising kingpin and Nigel Wilson, the former chief executive of Legal & General.
Top politicians and policymakers can also be spotted at the event: George Osborne was a regular attendee when he was chancellor of the exchequer, while last year both Jeremy Hunt, then the chancellor, and Rachel Reeves, then his shadow, were guests of one of the U.K.’s major lenders.
While the cultivation of plants is central to Chelsea, the cultivation of client relationships is also paramount. Headline sponsors of the event have included Merrill Lynch Investment Managers (now part of BlackRock) and asset manager M&G Investments.
The seeds sown, too, are not necessarily of the horticultural kind.
For example, the 2018 sale of data provider Refinitiv (since acquired by the London Stock Exchange Group) by Thomson Reuters to Blackstone is said to have had its origins in a meeting between David Craig, the Refinitiv chief executive, and Joseph Baratta, Blackstone’s head of private equity, at the 2013 gala night.
Long-time attendees grumble that the event does not have quite the pull it used to. There are arguably fewer bankers present than there were 15 years ago which, according to some, reflects caps on the value of corporate hospitality some business people are now allowed to accept.
There is also a school of thought that modern CEOs are more likely to be seen competing in triathlons and, when they do accept invitations, it is likely to be for a more egalitarian and less elitist event such as, say, a Premier League football match.
This year’s gala suggested there may be some truth to that.
From the C-suite, there were certainly more FTSE 100 chairs than CEOs in attendance, although several individuals who have in the last year stepped down from such roles were spotted among the blooms.
Among the main talking points, a few common themes emerged. One was the uncertainty that continues to stalk businesses in the United States due to a combination of factors, chiefly President Donald Trump’s tariffs, which several attendees suggested may benefit the U.K. if it drives capital and business investment elsewhere.
Another is the impact that continues to be felt by Chancellor Rachel Reeves’ decision to abolish the so-called “non-dom” rules which enabled U.K. residents who declared their permanent home as being overseas to avoid U.K. tax on their foreign income and gains. It is credited with having driven hundreds of wealthy individuals out of the U.K. and harmed entrepreneurship in the process.
The third theme, though, was altogether more surprising. The mood music surrounding the U.K. economy during the last 12 months has been unremittingly bleak. Yet there were, on Monday evening, an unexpectedly high number of corporate chiefs who, when questioned how their business was faring, answered along the lines of: “I probably shouldn’t say this, given the backdrop, but we’re actually doing better than I expected so far this year.”
The U.K. economy still faces headwinds, not least Reeves’s recent increase in employer’s national insurance contributions, which makes it more expensive to hire people. There is also a sense that the GDP figures for the first quarter of the year were flattered by stockpiling of goods and strong export figures ahead of Trump’s tariffs kicking in.
However, leaving the show on Monday evening, there was a strong sense that these surprisingly strong figures may not have been a flash in the pan.
