Labour Manifesto 2017

A NEW DEAL FOR
BUSINESS
The majority of businesses play
by the rules: they pay their taxes
and their workers reasonably and
on time, and they operate with
respect for the environment and
local communities. That is why it is
vital that government ensures that
businesses doing the right thing
are rewarded rather than undercut
or outbid by those unscrupulous
few that cut corners, whether
on taxes, workers’ conditions,
environmental standards, or
consumer safety and protection.
But our business culture doesn’t
always work like this. Scandals such as
the failure of BHS show how the longterm
growth of a company can be
sacrificed for the sake of a uick buck.
When shareholders are looking
for quick short-term returns, they
encourage companies to cut corners.
That means they look to cut wages,
instead of investing for the long term,
or they spend longer inventing new
tax avoidance schemes than they
do inventing new products.
By reforming the rules our companies
operate under, we can make sure
they stay focused on delivering
shared wealth. Labour will amend
company law so that directors owe a
duty directly not only shareholders,
but to employees, customers, the
environment and the wider public,
and we will consult on bringing
forward appropriate legislation
within this Parliament.
Labour will amend the takeover
regime to ensure that businesses
identified as being systemically
important’ have a clear plan in place
to protect workers and pensioners
when a company is taken over.
Labour will also legislate to reduce
pay inequality by introducing an
Excessive Pay Levy on companies
with staff on very high pay.
Our small and medium-sized
enterprises Ss are the backbone
of our economy, providing 60
per cent of private-sector jobs.
Technological changes, like the
spread of digital manufacturing and
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