Business groups are vying to influence political party priorities ahead of the July 4 election. Here are some of the big ideas promoted by the UK’s biggest industry bodies in their own manifestos.
Workplace savings schemes
The Association of Building Societies is calling for a workplace savings scheme to help build the financial resilience of UK households. Currently, 14 million people have less than £100 in savings and 9 million have no savings at all, according to the Office for Money and Pensions.
Under the scheme, a certain amount of savings will be deducted directly from the wages of companies with more than 250 employees, similar to the way pensions work today. BSA does not seek tax-free treatment or matching contributions from employers, hoping to make the program as simple and quick as possible.
Increase sick pay
The Association of British Insurers is calling for more generous laws that would increase sick pay, provide it from the first day of leave and extend the scheme to people on lower incomes. The ABI also wants the next government to provide sick pay for people returning to work on reduced hours and ensure the self-employed also get support.
Currently, only workers classed as employed – not freelancers or contractors – are eligible, and they must earn an average of at least £123 a week. Those who qualify are paid up to £116.75 a week for up to 28 weeks, minus the first three days.
The ABI says small and medium-sized businesses should also be reimbursed compulsory sick leave costs if they provide effective health services and back-to-work support. Together, these policies could not only increase productivity in the UK economy, but also reduce health and protection payouts by specialist insurers and increase uptake of insurer-provided health and wellness services.
Make big tech and social media pay for fraud
City lobby group UK Finance is calling on the next government to introduce fraud legislation that forces major tech and social media companies to contribute up to £40m a year to reimburse customers and tackle fraud on their platforms.
This will include a new Fraud and Fraud Bill to consolidate an ongoing voluntary scheme where tech firms agree to reduce fraud through their platforms and services.
UK Finance also wants online platforms, ISPs and technology companies to be covered by the economic crime levy, forcing them to pay the costs of tackling economic crime and reimbursing victims of fraud. Currently, most of the cost of reimbursing fraud victims falls on the banks.
Government Appointed AI Champion for SMEs
The British Chamber of Commerce says that while AI can help level the playing field for smaller businesses, most do not understand how to get the most out of the technology and feel vulnerable to new threats, including cyber attacks.
It is now pushing for the next government to create a “trust framework”, including through a new AI program and the appointment of an AI champion who will support digital skills and development in small and medium-sized businesses.
“A new government must provide the right support for businesses to make the most of these radical advances and no small business should feel left behind. An AI champion brought in by a new government will ensure this is not the case,” the BCC said
Ban smart highways
The AA is calling on politicians to abandon what it says is the “failed experiment of ‘smart’ motorways”, which were originally intended as a way to ease congestion without spending money on widening roads, using what before that it was a hard shoulder – or emergency lane – for regular traffic.
The AA believes the hard shoulder should be rebuilt, saying a third of motorists currently avoid using the inside lane for fear there could be damaged vehicles in front of them, and emergency vehicles now struggle to reach to accidents due to heavy traffic jams.
Make the annual budget a fixed date in the political calendar
To revive the economy, the National Institute of Economic and Social Research (NIESR) suggests three pillars of fiscal policy reform. First, use public sector net worth as a public policy target, which would provide a better measure of public debt sustainability.
Second, deduct the amount of investment in public infrastructure from the way the government measures the deficit, ensuring that it is separated from day-to-day spending. Third, make the budget and other fiscal events fixed dates on the calendar. This would ensure that budgets are not influenced by the short-termism of party politics or goals such as winning elections.