24 September 2018

  |  CBI Press Team

Update

Labour must meet firms halfway or crack the foundations of this country's prosperity

The CBI has responded to a speech at Labour Party conference by John McDonnell MP.

Labour must meet firms halfway or crack the foundations of this country's prosperity

Carolyn Fairbairn, CBI Director-General, said:

“Labour must meet business halfway or they will crack the foundations of this country’s prosperity.

“No-one in business would disagree with the fundamental aims of these policies – to engage and motivate employees, deliver for customers and share prosperity. And it is good to hear the Shadow Chancellor say he is proud of the millions of businesses who contribute to communities across the UK.

“But with Labour’s current proposals, the fallout for the UK, its workers and customers would be a drop in living standards.

“From renationalisation to dilution of shares, Labour seems determined to impose rules that display a wilful misunderstanding of business. Their policies would immediately reduce the value of shares owned by ordinary people by over 10% and hobble UK ambitions to compete on a global stage. That’s a double whammy for people’s pensions and savings.

 “At a time of great uncertainty, this is no way to build the foundations of competitiveness and productivity that will improve people’s lives.

“Business shares many of Labour’s aspirations. From training budgets to pay transparency and employee share ownership, great strides are being made. Firms urge Labour to open their eyes and work with them to move forward, rather than blocking progress through blind ideology.”

Read our initial response to Labour’s employee ownership proposals