Business interest groups are vying for influence over political party priorities ahead of the July 4 election. Here are some of the big ideas offered by the UK’s biggest industry bodies in their own manifestos.
Workplace savings systems
The Building Societies Association is calling for a workplace savings scheme to help build the financial resilience of British households. Currently, 14 million people have less than £100 in savings – and 9 million have no savings at all, according to the Money and Pensions Service.
Under the scheme, companies with more than 250 employees would deduct a set amount of savings directly from wages, similar to how pensions work today. The BSA does not require a tax exemption or matching contribution from employers in the hope of simplifying and expediting the program as much 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 that the self-employed also receive support.
Currently, only workers classed as employees – rather than freelancers or contractors – are eligible and 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 SMEs should also be reimbursed for statutory sick pay costs if they provide effective health services and return-to-work support. Together, these policies could not only increase productivity across the UK economy, but also reduce health and protection payments from specialist insurers and encourage the use of health and wellness services provided by insurers.
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 big tech and social media companies to contribute up to £40m a year to reimburse customers and fight fraud on their platforms.
This would include a new Fraud and Fraud Act that would consolidate the current voluntary system where tech firms agree to reduce fraud through their platforms and services.
UK Finance also wants online platforms, ISPs and technology companies to be subject to an economic crime tax, forcing them to pay the costs of fighting economic crime and compensating 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 artificial intelligence 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.
He 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 to support digital skills and development in SMEs.
“The 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. The AI champion introduced by the new government will ensure this is not the case,” the BCC said
Ban on smart highways
The AA is calling on politicians to scrap what it says is a “failed experiment in ‘smart’ motorways”, originally intended as a way to ease congestion without spending money on road widening, using what was previously a hard shoulder – or failure lane – for normal operation.
The AA believes the hard shoulder should be reinstated, saying a third of drivers currently avoid using the inside lane due to fears of broken down vehicles ahead and emergency vehicles are now struggling to get to crashes due to severe congestion.
Make the annual budget a fixed date on the political calendar
To revive the economy, the National Institute for Economic and Social Research (NIESR) proposes 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, discount the amount of investment in public infrastructure from the way the government measures the deficit and ensure that it is decoupled 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.