Businesses and their approach to general elections have evolved significantly in recent years. In the past, it was common for large corporations to make donations to political parties, with companies such as SmithKline Beecham, United Biscuits, General Accident, and Whitbread all contributing to the Conservative party. However, there were also some companies, including Marks & Spencer and Pearson, who donated to other parties.
Despite the recommendation from the 1992 Cadbury Report to cease making political contributions, some companies, such as Hanson, continued to do so. This was due to the founder, Lord Hanson, being a strong supporter of Margaret Thatcher. Even after political donations ceased, it was not uncommon for CEOs of FTSE 100 companies to publicly endorse or criticize politicians during election time. In 1997, well-known business figures like Robert Ayling of British Airways, Bob Bauman of British Aerospace (now BAE Systems), and George Simpson of GEC publicly endorsed Tony Blair’s Labour party, while John Major’s Conservative party also had numerous supporters.
Business leaders were also not afraid to speak out about specific policies. Prior to the 1997 election, Sir Iain Vallance, chairman of BT, expressed his disapproval of Labour’s proposal for a windfall tax on privatized utilities. Similarly, Brian Stewart, CEO of Scottish & Newcastle, spoke out against Labour’s plan to establish a Scottish Parliament with tax-raising powers.
However, this is no longer the case. Most CEOs, while having their own political opinions, prefer to keep them private. Those who do engage with politicians make sure to remain impartial and not express a preference for one party over another.
Despite this shift, businesses still have their own policy wish-lists, particularly small businesses. Their top priorities include a change in the law to enforce prompt payments from larger businesses to their suppliers and reform of business rates. Larger companies, particularly in the retail and hospitality sectors, also share these concerns about business rates.
For larger corporations, the main desire is for clarity and consistency in policy. As Dame Amanda Blanc, chief executive of Aviva, stated, “What we want is for the environment to be one where we can invest, with certainty. You know, we want consistency and stability.” She emphasized the need for a decisive election and certainty for businesses to invest in UK infrastructure.
The brief tenure of Liz Truss in 10 Downing Street was perceived as damaging by the business community, and many executives were grateful to Rishi Sunak and Jeremy Hunt for restoring order to public finances after the chaos caused by Kwasi Kwarteng’s mini-budget in September 2022. This is the first time since David Cameron’s time in office that a prime minister has had the support of the corporate world.
Theresa May’s infamous 2016 speech, in which she declared that “if you believe you are a citizen of the world, you are a citizen of nowhere,” alienated many CEOs who frequently traveled internationally. She was replaced by Boris Johnson, who, as foreign secretary in 2018, notoriously said “f*** business.” This was followed by the brief tenure of Liz Truss.
While big businesses primarily seek stability and consistency in policy, they also have specific wish-lists of their own. For example, the leisure, hospitality, and luxury goods industries would like to see the restoration of VAT-free shopping for international visitors. Property-focused businesses would appreciate a more coherent planning regime, while housebuilders would like to see a relaxation of rules requiring affordable homes in new developments.
Retailers are calling for the police to prioritize tackling shoplifting, and manufacturers are seeking an easing of trade frictions that have arisen since Brexit. Car manufacturers, who face fines if a certain proportion of their sales are not electric vehicles, would like to see the government reintroduce incentives for purchasing EVs and expand the EV charging network.
Although businesses do not have votes, they are crucial in creating jobs and wealth in the country. As the general election campaign heats up over the next six weeks, politicians would do well to remember this fact.
