Labour's business plans criticised by industry leaders

Babs Murphy
Babs Murphy

Business leaders have criticised the Labour party’s proposals to expand employee ownership schemes of large firms.

Shadow Chancellor John McDonnell has outlined plans to order private companies to give away up to 10 per cent of their shares to their workers.

But the move has been criticised by chamber of commerce chiefs and the CBI.

Babs Murphy, chief executive of the North and Western Lancashire Chamber of Commerce, said: “These proposals will do little to benefit workers. Investors will simply put their money elsewhere or businesses will find other ways in which to reward shareholders.

“Britain needs an enterprising environment to flourish with investment in skills and infrastructure and not imposed draconian measures that will hurt businesses and the workforce alike.”

Carolyn Fairbairn, CBI Director-General, said: “Labour must meet business halfway or they will crack the foundations of this country’s prosperity. From re-nationalisation to dilution of shares, Labour seems determined to impose rules that display a wilfull misunderstanding of business.”