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Business is forging increased links with the Conservative Party amid a growing expectation that it will form the next government.
Well-placed business sources say that a growing number of large companies, particularly in the manufacturing and banking sectors, have approached the Tories for top-level meetings in the hope of shaping policy.
The Tories recently announced that the party would work with the aero-space company Rolls-Royce to map out a strategy for high-value-added manufacturing.
Alan Duncan, the Shadow Business Secretary, has recently met the chief executives or chairmen of BP, Shell, Vodafone, EdF and Total. He said: “They are knocking on the door.” The Tories have also tried to win business confidence by promising to cut corporation tax from 28p to 25p, although companies have raised concerns over plans to cut research and development tax allowances.
Martin Temple, chairman of the EEF manufacturers’ organisation, said: “There has been an increasingly positive dialogue with business and industry and an increasing desire to understand manufacturers’ concerns. We will need to see this translated into policy commitments which have competitiveness at their heart.”
A variety of FTSE 100 companies have started “double briefing” in the past few weeks, setting up shadow public affairs departments to improve relations with the Tory front bench.
One of Britain’s biggest energy companies acknowledged that it had stepped up its lobbying of senior Conservative figures recently, although it emphasised that it had always maintained close contact with the party.
The same source said that there was a campaign on the part of public affairs consultancies to cement links to the Conservative Party. One source at a lobbying group said that clients were interested only in speaking to the Conservatives.
The Tories already have close links with the public affairs industry. Not only is David Cameron a former PR executive but Charles Hendry, the Shadow Energy Minister, was an executive at the PR firms Burson-Marsteller and Ogilvy and Mather. The party has built links with business groups over the past 18 months through Conservative Business Relations, an organisation that organises contacts between businesses and MPs.
About 1,200 City workers crammed into the City Grange Hotel two weeks ago to hear George Osborne, the Shadow Chancellor, speak. Two years ago, a fraction of that number were turning up for political get-togethers. Meetings are planned with Boris Johnson, the new Mayor of London, and David Cameron.
City Circle, which fosters ties between the financial services industry and the party and which is co-chaired by Michael Spencer, a City tycoon and the chief executive of ICAP, has 7,000 supporters. City Future, a sister organisation for City people under 35, has 1,000 on its database. One senior banker said there had been a significant change in attitudes. “A year ago the Tories were pushing hard to see bank chief executives. Now it’s the chief executives who are agitating to see Cameron and Osborne.”
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The City always prefers real Tories to imitation ones. Now that the New Labour Project is in its death throes, it doesn't have to waste any more time with it.
Paul, Coventry,
Come on Sean, cutting corporation tax means (i) more jobs, (ii) more dividends for the pension funds that virtually all employed people will look to, in some form, to fund their retirement, and (iii) more profit for reinvestment for future growth in profits which yield more tax for public spending.
andrew, London, UK
Sean - By cutting corportation tax the Conservatives will pave the way for wealth-making investment. Why should companies settle here if they are taxed to death? Lower corportation tax, growth in business, growth in job opportunities, growth in economy, everyone's happy in the long run.
Sam H, Bury,
It makes sense for Companies to sound out the Conservatives on policies of a future administration but unfortunately we may have to contend with 2 years of Old Labour policies in the meantime.
john, milton keynes,
Letting us know beforehand there will be No tax cuts for the British people but promising that corporation tax will be cut from 28p to 25p!!.
In all things, it is a question of loyalty.
Niether labour or the conservatives have any for us.
Both holding an utter distain for us all.
Sean Hamerton, York.,
A perfect example of how our country is run around the agenda of big business and corporate elites. It is therefore no wonder that this country is disintegrating as the interests of the citizen take second place and make the UK a pseudo democracy. Why do we put up with it?
Ben, London, UK