Business interest groups are vying for influence over political parties’ priorities ahead of the July 4 elections. Here are some of the big ideas being touted by Britain’s biggest industrial organizations in their own manifestos.
Savings schemes in the workplace
The Building Societies Association has called for the introduction of a workplace savings scheme that would 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, a fixed amount of savings would be deducted directly from the payrolls of companies with more than 250 employees, similar to the way pensions work today. The BSA does not ask for tax-free treatment or a matching contribution 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 those on lower incomes. The ABI also wants the next government to pay sick pay for people returning to work with reduced hours, and ensure that the self-employed also receive support.
Currently, only workers classified as employees are eligible – and not freelancers or contractors – and must earn at least £123 per week on average. Those who qualify will receive up to £116.75 per week for up to 28 weeks, minus the first three days.
The ABI says small and medium-sized businesses should also receive reimbursement for statutory sick pay if they provide effective healthcare and return to work support. Together, these policies could not only boost productivity in the UK economy, but also reduce healthcare and protection payouts from specialist insurers and encourage uptake of health and wellbeing services provided by insurers.
Make big tech companies and social media pay for fraud
City lobby group UK Finance is calling on the next government to introduce fraud legislation that will force major tech and social media companies to contribute up to £40 million a year to refund customers and combat fraud on their platforms.
That would include a new fraud and scam law to consolidate a current voluntary arrangement where tech companies agree to reduce fraud through their platforms and services.
UK Finance also wants online platforms, internet providers and technology companies to be covered by the economic crimes levy, forcing them to pay for the costs of tackling economic crime and compensating fraud victims. Currently, most of the costs of reimbursing fraud victims are borne by banks.
Government-appointed AI Champion for Small and Medium Businesses
The British Chambers of Commerce say 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.
She is now urging the next government to create a ‘trust framework’, including through a new AI program and the appointment of an AI champion who would support digital skills and development in small to medium enterprises .
“A new government must provide businesses with the right support to make the most of these radical advances, and no small business should feel left behind. An AI champion, introduced by a new government, will ensure this is not the case,” the BCC said
Ban smart highways
The AA is calling on politicians to scrap what it says is “the failed experiment of ‘smart’ motorways”, which were originally intended as a way to reduce congestion without spending money on widening roads, by using what used to be an emergency lane – or emergency lane – for regular traffic.
The AA believes the emergency lane should be reinstated, saying a third of motorists currently avoid the inside lane for fear of broken-down cars ahead, and emergency vehicles are now struggling to get to an accident due to severe traffic jams.
Make the annual budget a fixed date on the political calendar
To revive the economy, the National Institute of Economic and Social Research (NIESR) proposes three pillars for fiscal policy reform. First, use public sector net worth as a target for public policy, which would be a better measure of public debt sustainability.
Second, separate the amount of investment in public infrastructure from the way the government measures the deficit, and make sure it is separated from day-to-day spending. Third, make sure the budget and other fiscal events become fixed dates in the calendar. This would ensure that budgets are not influenced by the short-termism of party politics or by goals such as winning elections.