Ed Miliband argues that change is needed to promote purposeful companies that can rebuild our post-Covid economy (Opinion, FT.com, February 2).
There’s no need to wait to change company law. All-employee ownership is a ready-made solution that addresses two of the three crises the former Labour party leader and current shadow business secretary identifies. These businesses deliver the productivity uplift the UK needs and tackle inequality by putting more cash in the hands of the lowest paid.
Look beyond John Lewis and policymakers will find a sector worth over £30bn to gross domestic product, that has grown by over 60 per cent in the past six years. It includes manufacturing firms, wholesalers and care providers that retain wealth in local communities and invest for the long term not the next quarter.
Recovery needs strong economic foundations and employee ownership already promotes growth, fairness and economic resilience. We just need more business owners to choose this purposeful model and follow in the footsteps of the likes of Richer Sounds, Riverford Organic Farmers and Aardman Animations.
This letter was published by the Financial Times on February 8.