New government offers an opportunity to rebuild trust and unlock the UK’s latent economic potential

5 July 2024 UK Economy

Responding to the victory of the Labour Party at the General Election, Jonathan Geldart, Director General at the Institute of Directors, said:

“I would like to congratulate the Labour Party on their seismic result at the General Election. The IoD looks forward to working with the new government to create a resurgent UK economy in which individual companies and directors have the confidence to invest and grow.”

“During the election campaign, we have been impressed by the willingness of Labour to work in partnership with business. It is essential that this positive relationship continues, and that the new government places wealth creation at the forefront of its priorities.

“In order to reignite economic growth, the new Government must urgently address some key challenges. Labour and skills shortages are persistent issues for our members. The UK needs to regain and accelerate its position of leadership in the transition to a net zero future. And an industrial strategy which unlocks private investment is needed in order to build long-term confidence in UK economic competence and stability.

“The new government is rightly committed to embedding higher standards of conduct and ethics into public life. It is equally important that the UK business community regains the esteem of wider society. We hope that the new government will work with the IoD in making the UK’s corporate governance framework fit for the future and help it roll out our planned code of conduct for directors.”

The Institute of Directors’ priorities for the incoming government include:

  • An industrial strategy to provide a more stable and predictable framework for business investment.
  • A plan that delivers vital infrastructure investment in road, rail and renewable energy.
  • An independent skills shortages agency to assess the UK’s current and future skills needs.
  • Using corporation tax to provide a financial incentive for companies to invest in skills shortage areas and the achievement of net zero.
  • Developing a light touch sustainability reporting framework for SMEs.
  • Reform of the Companies Act to reflect the key role that directors play in modern society, and following through on delayed corporate governance reforms.
  • Promoting uptake of the Code of Conduct for Directors, which the IoD has developed under the guidance of Lord (Iain) McNicol, as a means of rebuilding public trust in UK business.

Further detail on the Institute of Directors’ priorities can be found in its ‘Manifesto for Business – A policy roadmap for the next UK Government’.

Source : iod