Business
What the manifesto says: Labour says it wants to discourage rocketing executive pay, short-termism and unscrupulous business behaviour, mentioning the BHS scandal, which it says was a high street shop “sacrificed for the sake of a quick buck”. There will be rewards for firms that pay a fair wage and respect the environment.
Analysis: A new deal for business means a more onerous regime of regulation for large companies and support for small firms and exporters with extra funds for trade promotion and a state-backed insurance that guarantees payment for exports even when foreign buyers go bust. Big firms considered “systemically important” will be shielded from foreign takeovers and protected from foreign firms dumping cheap goods in the UK, but directors will owe a duty to employees, suppliers and the environment and not just to shareholders.
Companies will also need to abide by strict rules when bidding for government contracts: complying with rules on workers’ rights, environmental protection and paying suppliers on time. Controversially, bidding firms will need to show that their highest-paid employee earns no more than 20 times the lowest. This will prevent Serco, Capita, G4S and all the other big outsourcing firms from running Britain’s prisons and IT systems without dramatic reductions in top pay.
