Labour's corporate reform consultation may deepen UK neoliberal policies

Labour’s newly launched 12-week consultation aims to streamline corporate disclosures but faces criticism for undermining transparency and stakeholder rights. It proposes scrapping the publication of CEO-to-worker pay ratios, a key metric for assessing inequality, and removing annual shareholder votes on director pay, relying instead on three-year votes. The plan also encourages fully virtual annual general meetings, which critics say limit shareholder questioning and dilute accountability.

The editorial notes that similar reforms were introduced by the previous Conservative government to curb excessive boardroom power, and that corporate lobby group GC100 supports the cuts. It argues that genuine reform should prioritize workers’ representation on boards and comprehensive pay reporting, citing voluntary models like B Corporations. Legal scholar Katharina Pistor is quoted to emphasize that corporate law can perpetuate inequality, urging the government to abandon one outlet consultation.