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Morning Call: pick of the papers

The ten must-read comment pieces from this morning's papers.

1. Giving the public a chance to voice their opinion could be the only way to improve the NHS (Independent)

No politician is allowed to pledge a penny of extra spending on any cause, notes Steve Richards.

2. Salmond is wrong. England is not the enemy (Times)

The nationalists paint the rest of the UK as right-wing and Ukippy, writes Hugo Rifkind. It’s actually a tolerant and multicultural nation.

3. Cost-of-living masks Labour ideas crisis (Financial Times)

The wisest thing the UK opposition could do is outline the spending cuts it would make in power, says Janan Ganesh.

4. Can no one in Britain be trusted to run an election campaign? (Daily Telegraph)

We are led by politicians who have become so beholden to the mechanics of politics that they must look abroad for their vision and their credibility, writes Benedict Brogan.

5. Obama’s Asia policy is ambiguous (Financial Times)

The rise of China is the big strategic challenge facing the US and should focus its attention, writes Gideon Rachman.

6. Sorry students, I lied to you. University is about desperation, not aspiration (Guardian)

The graduate premium is going down as tuition fees and debt go up: but for today's students that's just the tip of the iceberg, says Laurie Penny.

7. Stamp duty is worse than a mansion tax (Times)

George Osborne taxes people who move house more than smokers, writes Ross Clark. It’s bad for the economy.

8. Where would you rather live – Great Britain or little England? (Guardian)

If you agree that Britain is better off in the EU, make yourself heard now, says Nick Clegg. The Lib Dems can't win this argument alone.

9. Scots are not morally superior. That's why I believe in solidarity with the folk living south of Carlisle (Guardian)

Whatever the Scottish separatists claim, our shared beliefs in equality and social justice don't stop at the border, says Tom Morton. 

10. Restoring trust in the European parliament (Financial Times)

Europe’s assembly must act to tackle its internal abuses, says an FT editorial. 

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BHS is Theresa May’s big chance to reform capitalism – she’d better take it

Almost everyone is disgusted by the tale of BHS. 

Back in 2013, Theresa May gave a speech that might yet prove significant. In it, she declared: “Believing in free markets doesn’t mean we believe that anything goes.”

Capitalism wasn’t perfect, she continued: 

“Where it’s manifestly failing, where it’s losing public support, where it’s not helping to provide opportunity for all, we have to reform it.”

Three years on and just days into her premiership, May has the chance to be a reformist, thanks to one hell of an example of failing capitalism – BHS. 

The report from the Work and Pensions select committee was damning. Philip Green, the business tycoon, bought BHS and took more out than he put in. In a difficult environment, and without new investment, it began to bleed money. Green’s prize became a liability, and by 2014 he was desperate to get rid of it. He found a willing buyer, Paul Sutton, but the buyer had previously been convicted of fraud. So he sold it to Sutton’s former driver instead, for a quid. Yes, you read that right. He sold it to a crook’s driver for a quid.

This might all sound like a ludicrous but entertaining deal, if it wasn’t for the thousands of hapless BHS workers involved. One year later, the business collapsed, along with their job prospects. Not only that, but Green’s lack of attention to the pension fund meant their dreams of a comfortable retirement were now in jeopardy. 

The report called BHS “the unacceptable face of capitalism”. It concluded: 

"The truth is that a large proportion of those who have got rich or richer off the back of BHS are to blame. Sir Philip Green, Dominic Chappell and their respective directors, advisers and hangers-on are all culpable. 

“The tragedy is that those who have lost out are the ordinary employees and pensioners.”

May appears to agree. Her spokeswoman told journalists the PM would “look carefully” at policies to tackle “corporate irresponsibility”. 

She should take the opportunity.

Attempts to reshape capitalism are almost always blunted in practice. Corporations can make threats of their own. Think of Google’s sweetheart tax deals, banks’ excessive pay. Each time politicians tried to clamp down, there were threats of moving overseas. If the economy weakens in response to Brexit, the power to call the shots should tip more towards these companies. 

But this time, there will be few defenders of the BHS approach.

Firstly, the report's revelations about corporate governance damage many well-known brands, which are tarnished by association. Financial services firms will be just as keen as the public to avoid another BHS. Simon Walker, director general of the Institute of Directors, said that the circumstances of the collapse of BHS were “a blight on the reputation of British business”.

Secondly, the pensions issue will not go away. Neglected by Green until it was too late, the £571m hole in the BHS pension finances is extreme. But Tom McPhail from pensions firm Hargreaves Lansdown has warned there are thousands of other defined benefit schemes struggling with deficits. In the light of BHS, May has an opportunity to take an otherwise dusty issue – protections for workplace pensions - and place it top of the agenda. 

Thirdly, the BHS scandal is wreathed in the kind of opaque company structures loathed by voters on the left and right alike. The report found the Green family used private, offshore companies to direct the flow of money away from BHS, which made it in turn hard to investigate. The report stated: “These arrangements were designed to reduce tax bills. They have also had the effect of reducing levels of corporate transparency.”

BHS may have failed as a company, but its demise has succeeded in uniting the left and right. Trade unionists want more protection for workers; City boys are worried about their reputation; patriots mourn the death of a proud British company. May has a mandate to clean up capitalism - she should seize it.