The Next UK Prime Minister Faces a Long Wish List from CEO
26.05.2024: With a general election set for July 4, Prime Minister Rishi Sunak and Labour leader Keir Starmer are vying for the support of the business community. Both leaders are finalizing their manifestos, each aiming to present themselves as the ideal candidate to run the country. Here’s what CEOs from various sectors want from the next UK premier.
Reforming London’s Equity Market
Steven Fine, CEO of Peel Hunt, emphasizes the need for the next government to push through reforms to London’s equity market. Describing it as “the engine room for our entire economy,” Fine highlights the recent exodus of companies from the stock market due to low valuations and lack of liquidity. He urges the finalization of the Mansion House reforms, which aim to boost investment in UK assets. Fine also champions the UK ISA and supports requiring pension funds to disclose their investment in British companies to foster a strong domestic market.
Addressing Workers’ Rights Reforms
Martin Sorrell, founder and executive chairman of S4 Capital, expresses concern over the workers’ rights reforms proposed by Labour’s deputy leader Angela Rayner. He refers to these reforms as Labour’s “Achilles heel” and stresses the need for a clear plan to reduce uncertainty. Sorrell also calls for solutions to improve the UK’s low productivity.
Reforming the Apprenticeship Levy
John Roberts, founder and CEO of AO World, highlights the urgent need to reform the Apprenticeship Levy. He advocates involving experienced businesses like AO, M&S, Tesco, and Timpson in creating opportunities to transform young people’s futures. Roberts believes the government should act as a funder rather than an operator or innovator.
Tax Equality for Hospitality
Tim Martin, founder and chairman of J D Wetherspoon, campaigns for equal taxation for bars and restaurants compared to grocers. He argues that the current tax system places the hospitality industry at a disadvantage, as it pays higher taxes on food and alcohol. Martin calls for a level playing field to ensure fair and equitable taxation.
Easing the Housing Shortage
Graham Prothero, CEO of MJ Gleeson, outlines three steps to address the housing shortage: kick-starting the first-time buyer market with targeted fiscal stimulus, addressing the shortage of skilled tradespeople, and reforming the planning system. Prothero notes that the government has failed to meet its 2019 manifesto target of building 300,000 new homes a year in England.
Prioritizing Fintech and Tackling Fraud
Janine Hirt, CEO of Innovate Finance, urges the next government to prioritize tackling fraud and creating a better regulatory environment for new financial technologies. Innovate Finance has released its own manifesto, emphasizing the role of fintech in growing the economy, tackling fraud, and improving financial wellness for consumers.
Overhauling Property Taxes for Retailers
Tom Grogan, co-founder of Lemon Pepper Holdings and master franchisee of Wingstop UK, calls for an overhaul of property taxes on retailers. He argues that the current business rates structure is outdated and places an unfair burden on traditional bricks-and-mortar businesses. Grogan stresses the importance of reassessing business rates to support the vitality of the UK’s high streets.
As the election approaches, the next UK prime minister will need to address these key issues to gain the support of the business community and ensure a thriving economy.