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Labour company plans

The Labour party promised a radical reform of company management at its party conference on 23 September 2018.

Proposals include requiring every company operating in Britain and with more than 250 employees to transfer 1% of its shares into a new Inclusive Ownership Fund, until the fund owned 10% of the company. The fund would be expected to reach about £4 billion by the fifth year, able to pay £500 a year to all employees. The balance of an estimated £2.1 billion would be taken by the state as a "social dividend".

The suggestion prompted an immediate response of what is to stop companies simply relocating overseas. The impact on inward investment appears to have been overlooked in what is, in effect, a new and heavy corporation tax.

Such a move would also act as a brake on companies expanding their workforce.

The party also said that one third of the boards of companies with a workforce of 250 would be drawn from workers, subject to a minimum of two. [18.09]