Labour report backs curbs on short-termism

A FIFTY per cent capital gains tax band on shares and increased state spending on research are among the recommendations contained in a report on business short-termism released today by the Labour party.

The independent review by Sir George Cox, a former director general of the Institute of Directors, suggests the governance code should ensure a substantial proportion of all executive remuneration is dependent on long-term results.

He also wants to encourage long-term investment by tapering the capital gains tax charged on equities on a sliding scale. This would see the rate drop from 50 per cent to 10 per cent over a ten year period.

Other suggestions include an independent body to plan national infrastructure developments, taking such long-term investment decisions “out of party politics”.

Shadow chancellor Ed Balls said the report would be considered while setting future Labour policy: “A One Nation economic policy is about making sure our economy invests and works for the long-term and uses the talents of all and not just a few.”