How can we boost Britain’s productivity growth and trade post-Brexit? What role does national government play in creating an enabling macroeconomic environment, and how can it do this well?
This work stream connects into the development of regional and sector-based industrial strategies, as well as fiscal and monetary policy, competition policy, corporate governance and the impact of trade and globalisation on inward investment, the demand for skills and creation of quality jobs.
The idea that business can be at the heart of an inclusive society, driven on the path towards social progress by a dynamic market, without undue exploitation, maximising shared economic and social benefits, must be central to any definition of progressive capitalism. It’s the theme of my new book, ‘The Company Citizen’. Continue reading “The Progressive Company Citizen”
The British people have spoken loud and clear by returning a hung parliament. They have rejected a hard Brexit and a drift towards nationalism. But they have also rejected a return to the neoliberalism of the 1980s and the socialism of the 1970s.
The British people have spoken loud and clear by returning a hung parliament. They have rejected a hard Brexit and a drift towards nationalism. But they have also rejected a return to the neoliberalism of the 1980s and the socialism of the 1970s. Continue reading “The British electorate moves beyond neoliberalism, nationalism and socialism”
Con Keating, head of research at Brighton Rock Group, discusses the use of pre-pack resolutions for distressed companies with pensions deficits, arguing that the problem is not one of ‘moral hazard’.
Pre-pack resolutions of distressed companies have received an extremely bad press in recent weeks; morally righteous rent-a-pension-quote politicians and regulatory authorities have queued to express their indignation at this “moral hazard”.
Continue reading “Pre-pack Insolvency and Defined Benefit Pensions”
Writing for CapX, director of the Centre for Progressive Capitalism Thomas Aubrey argues that the current business rates system is not fit for a dynamic 21st century economy.
The government ought to provide the Competition & Markets Authority with broader powers to prevent the acquisition of UK firms if this reduces competition at national, regional or global level. Such a change will likely spur innovation in search for other sources of earnings growth, which may lead to greater investment and productivity
Earlier in my career as a management consultant, I once questioned a CEO on his firm’s low level of organic growth.
“Much easier to buy market share!” he responded with a grin.
The recent failed acquisition of Unilever by Kraft Heinz reminded me of this quip. Kraft Heinz is a large consumer goods conglomerate with around $27bn in annualised net sales and organic growth of 1.6% year on year. In contrast, the much larger Unilever has €53bn in turnover, which fell by 1% year on year.
Continue reading “Why Britain’s lax competition framework needs to change”
When Theresa May spoke to the CBI last month she urged businesses to invest in Britain for the long term. The challenge for business is that in an uncertain environment firms often prefer not to invest, as they could make poor investments and therefore hurt performance. The Prime Minister might have a point though as businesses in the UK have tended to underinvest during more positive conditions too
When Theresa May spoke to the CBI last month she urged businesses to invest in Britain for the long term. The challenge for business is that in an uncertain environment firms often prefer not to invest, as they could make poor investments and therefore hurt performance. The Prime Minister might have a point though as businesses in the UK have tended to underinvest during more positive conditions too.
Continue reading “Why share buybacks imply executive managers have run out of ideas”
Performance-related bonuses should be scrapped and replaced with a substantial proportion of salary to be paid in shares. This would lead to better cumulative returns over the long-term, faster productivity growth and a fairer society
Performance-related bonuses should be scrapped and replaced with a substantial proportion of salary to be paid in shares. This would lead to better cumulative returns over the long-term, faster productivity growth and a fairer society
The Chancellor mentioned the word productivity 14 times during the Autumn Statement and for good reason. The UK lags the US and Germany by 30 %, and France by 20% resulting in lower average incomes. Three of the key drivers of productivity include the ability of workers to access education to improve human capital, the ability to access finance allowing firms to expand, and for there to be sufficient infrastructure for firms and workers including housing
The Chancellor mentioned the word productivity 14 times during the Autumn Statement and for good reason. The UK lags the US and Germany by 30 %, and France by 20% resulting in lower average incomes. Three of the key drivers of productivity include the ability of workers to access education to improve human capital, the ability to access finance allowing firms to expand, and for there to be sufficient infrastructure for firms and workers including housing
So how did the chancellor do on these three key measures?
Continue reading “Why the Chancellor’s Autumn Statement won’t budge productivity growth”
An industrial strategy should address the persistent overvaluation of sterling and the failure to develop an appropriate system of technical education
Executive summary
On the eve of the EU referendum vote, according to numerous measures the British economy was performing exceptionally well. Unemployment was low and employment participation rates were at all-time highs, with continued low inflation. GDP growth since the financial crisis was only marginally behind Canada and the US, but well ahead of Germany and France.
Continue reading “Report: Rebalancing the UK economy – A post-Brexit industrial strategy”
