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Theresa May wants business to help people 'left behind by the forces of capitalism'

Nov 21, 2016, 13:41 IST

Prime Minister Theresa May.Jack Taylor PA Wire/PA Images

LONDON - The Prime Minister is calling for businesses to do more to help society and curb the excesses of capitalism in return for promising support and investment.

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Theresa May will address the Confederation of British Industry (CBI)'s annual conference on Monday and, writing in the Financial Times, says she wants Britain to become a world leader in "understanding the extent to which some people... feel left behind by the forces of capitalism, and in embracing a new approach that ensures everyone shares the benefits of economic growth."

May was swept into Downing Street after June's shock EU referendum result drove David Cameron to resign. Britain's decision to leave the 28-member bloc is seen by many people as a sign of rising "populism" and discontent with the economic and political order in the post-financial crisis world, which appears to favour the rich and powerful but do little for normal working people.

Lord Adair Turner, the former City regulator during the financial crisis, told Business Insider earlier this month: "You have a lot of people who don't feel that the system is working for them, some of whom then voted for Brexit."

Since becoming Prime Minister in July, May has walked a line between promising to crackdown on the worst elements of free market capitalism and trying not to scare businesses away as Brexit looms.

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In her first speech as Prime Minister she promised to "make Britain a country that works for everyone" not just the "privileged few" and she told the Tory party conference in October that businesses that don't pay their fare of tax or look after workers are officially "on warning." At the same time, May said earlier this month that Britain will be "unashamedly pro-business" after Brexit.

To reach this balance, May appears to advocate self-regulation of business rather than the government stepping in to regulate or monitor business practices and behaviour. She writes in the FT:

"I will always be one of the strongest advocates for the role businesses play in creating jobs, generating wealth and supporting a strong economy and society. Yet we must recognise that when a small minority of businesses and business figures appear to game the system and work to a different set of rules, the social contract between businesses and society fails - and the reputation of business as a whole is undermined.

"I am asking British businesses to work with me to change this. It will mean establishing the best corporate governance of any major economy, ensuring the voices of employees and consumers are properly represented in board deliberations and reforming executive pay. This will be essential to ensure business maintains and - where necessary - regains public trust."

May offers some inducements to businesses to take up her charge, promising an extra £2 billion a year in research and development spending by the end of this parliament and plans to tackle Britain's productivity problem in Wednesday's Autumn Statement.

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However, what businesses want most from the Prime Minister is more information about Brexit. CBI President Paul Drechsler will tell the group's annual conference on Monday: "We're not asking for a running commentary - but we are looking for clarity and - above all - a plan."

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