To: Vince Cable, Business Secretary
Establish the 'John Lewis' economy
Dear Mr Cable,
The John Lewis Partnership stands as an exceptional business and model of responsible capitalism. Therefore, we propose that HM Government implements a tax regime that significantly favours partnerships, to the extent that the majority of businesses will VOLUNTARILY structure themselves in like fashion and make capitalism work for everyone.
Nick Clegg talked of the 'John Lewis Economy' back in 2012. Let's make it happen.
Why is this important?
Capitalism is an unrivalled humanitarian success story. But it could be better.
Ownership of capital (assets) is declining at a time when returns are increasing; i.e. the rich naturally get richer.
Returns on labour (wages) are decreasing; i.e. work is less rewarding.
Yet, the quality of political debate on the subject of inequality has been abysmal, veering between an illiberal and unproductive pursuit of high earners to 1970s-style price and wage-fixing.
Let's not throw the baby out with the bathwater.
A sensible, simple, tax system that rewards partnership structures and encourages widespread capital ownership of companies would:
1. Make work pay.
2. Reduce inequality.
3. Improve productivity.
4. Improve industrial relations.
5. Incentivise workers.
In summary, as John Lewis said in 1957:
" Capitalism has done enormous good and suits human nature far too well to be given up as long as human nature remains the same. But the perversion has given us too unstable a society. Differences of reward must be large enough to induce people to do their best but the present differences are far too great. "
How it will be delivered
By email.
