Those searching election manifestos for mention of corporate governance could well be disappointed. Despite a raging debate in the City over executive pay and governance obligations, and a stalled effort at reforming audit and audit regulation, the manifestos are largely silent on key governance concerns.

Labour’s document rests on establishing a better relationship with the business sector and a new industrial strategy and reforms to the planning process. However, the manifesto stands by pledges to work with business to reform workers’ rights.

“Labour will stop the chaos and turn the page to create a partnership between business and trade unions by implementing ‘Labour’s plan to make work pay: delivering a new deal for working people.’”

The party says reforms will come in its first 100 days.

In speaking of economic growth, Labour offers a text more akin to conceptual thinking and, in places, a broad direction of travel, than concrete policy promises. It says part of the reason the UK economy has been sluggish is a “failure to acknowledge that sustainable growth requires government to be a strategic partner with business—that markets must be shaped, not merely served.” An idea that is a turnabout from the general Conservative view that markets should be left alone as much as possible to find their own way.

Labour adds it will “support business through stable policy environment‚ strengthening our economic institutions and giving investors the certainty they need to fuel growth”.

That means consulting “industry, trade unions and civil society” on economic plans.

‘A pro-business environment’

The manifesto further adds: “We will ensure a pro-business environment with a competition and regulatory framework that supports innovation, investment and high-quality jobs.”

Corporate tax will be capped at 25% for the whole of the next Parliament, with the manifesto declaring, “we will act if tax changes in other countries pose a risk to UK competitiveness”. There will be “permanent” full expensing for capital investment.

Labour does mention governance, but only in specific circumstances. The manifesto pledges a Football Governance Bill, which will offer a new financial regulator for the game.

And Royal Mail will receive special attention. Labour will “explore new business and governance models for Royal Mail…”.

The manifesto makes no mention of audit reform, despite assurances earlier in the year that the party would push ahead with proposals that include a brand new financial reporting and governance regulator with beefed-up powers.

When, in March, the Institute of Directors revealed its own Manifesto for Business, it called on the main parties to carry through on audit reform and set about reforming section 172 of the Companies Act.

That said, in 1997 when Labour came to power, independence of the Bank of England was announced without it’s previously appearing in the party’s election manifesto.

The CBI responded to the manifesto saying an industrial strategy and an accelerated planning process could “unlock investment”. So too, it says, could more devolutioin of powers to regional mayors, another labour pledge.

The CBI adds that unlocking investment for “green growth” will require plans to “outsmart not outspend our competitors.”

There was no immediate rejection of enhanced workers’ rights. CBI chief executive Rain Newton-Smith, said: “With a clear link between good employee relations and higher productivity, businesses recognise the importance of matching flaxibility in the labour market with fairness.

“Turning these proposals into legislation would require continued collaboration with business to understand the fine detail on how their implementation can avoid unintended consequences.”

Threshold reform

The Conservative manifesto focuses its attention on SME business and promises to reform the threshold for mandatory financial reporting.

However, the document does make this declaration: “Conservatives believe in reducing the burden of regulation, freeing up businesses to thrive.” That general statement appears to chime with a drive from the London Stock Exchange to halt or cut further corporate governance requirements.

The only party to make explicit mention of a significant redrawing of the corporate governance landscape is the Liberal Democrats, with statements on “purpose” and “fiduciary” duty.

It also hints at integrating human rights and environment issues into trade deals.

The manifesto says the party will “reform fiduciary duty and company purpose rules to ensure that all large companies have a formal state of corporate purpose, including considerations such as employee welfare, environmental standards, community benefit and ethical practice, alongside benefit to shareholders”.

That would suggest the LibDems would set about rewriting section 172 of the Companies Act, the measures that set out directors’ duties.

They also suggest they would ask companies to “report formally on the wider impact of the business on society and the environment”.

There is no further detail but the disclosure pledge echoes measures in the European Union that have introduced “double materiality” to sustainability reporting—companies report the impact of climate on their business prospects but also the impact of their own operations on society and the environment.

Manifestos provide policy blueprints but, as we have learned from previous governments, they rarely contain all the plans. The real impact on governance will be felt only once the election is over and the work of governing begins.