Introduce the Better Business Act 

We're a proud supporter of the Better Business Act (BBA), and the aim of aligning business interests with those of wider society and the environment. 

Specifically, the aim of the BBA is to amend S. 172 of the Companies Act, reflecting four principles: 

  1. Aligned Interests
  2. Empowering directors
  3. Default change
  4. Reflected in reporting

This would stipulate that directors of a company must “operate the company in a manner that benefits the members, wider society, and the environment." And that the purpose of the company should be to act in a corresponding manner, reduce relevant harms, etc. A requirement would be placed on businesses to report on this.

Proposal

Amend the Companies Act as described. This amendment should be accompanied with guidance on how companies and directors can meet their duties, with clear signposting to specialist support for relevant areas such as employee engagement and ownership.

Make a Firm Commitment to Grow EO Backed by a Clear Target

There’s a great deal of precedent for setting targets for growth of inclusive and democratic business models. For example, Scottish Government set a national target of 500 EOBs in Scotland by 2030. This firm commitment has been a platform for further action to encourage transitions, and lessons from this should be learned at the UK-level.

Proposal

Work with the EO sector to identify a realistic target for growing the EO sector, based on evidence of the massive level of existing growth since 2014. This would be a clear commitment to unlocking the benefits of the model for economic wellbeing and prosperity, and an anchor to explore further policy proposals.

A Minister Responsible for EO

During the coalition, and briefly after, a minister was identified as being responsible for EO as part of their wider portfolio. This responsibility was vital in taking forward key pieces of work in the sector, for example introducing the EOT and engaging with the sector on the model.

Proposal

EO should be introduced as a responsibility of an existing ministerial portfolio in the Department for Business & Trade. We would consider this a bare minimum of Government seeking to engage with a vital sector able to contribute to a more prosperous, secure, and equitable economy.

Ideally, this could be part of a new ministerial portfolio to be introduced with specific responsibility for Inclusive and Democratic Businesses more broadly. 

Publish a Business Tax Roadmap and Long-Term Industrial Strategy

In recent years, business confidence and investment have been rocked by huge challenges – the pandemic, energy crisis, and soaring inflation – that have been compounded by tax and regulation policy changes, creating an environment of uncertainty and economic insecurity. 

In turn, this has hit long-term growth and investment from businesses, an area where employee owned businesses excel, anchored resiliently their local and regional economies for the longer term, driving outsized contributions to livelihood wellbeing and economic prosperity.

Proposal

To create more certainty and increase business and investor confidence, we propose publishing a new industrial strategy, with supporting Business Tax roadmap of intended changes, that is co-produced with UK businesses of all sizes, sectors, and models.

Discover more on our Manifesto page or download the full manifesto directly.