2025:Week 25: Better Business Act
Friday saw the second reading of my Private Member’s Bill, which is seeking to amend the Company Director (Duties) bill to ensure that Company Directors have to consider not only the interests of their shareholders, but also the environment and their employees as well.
“A director of a company must act in the way he considers, in good faith, would be most likely to promote the success of the company for the benefit of— (a) its members as a whole, (b) the environment, and (c) the company’s employees.”
A few weeks ago, I visited Riverford Organic with my Honourable friend Caroline Voaden MP in her constituency of South Devon - a certified B Corporation that exemplifies what happens when businesses put people and planet alongside profit. They're not alone.
What struck out for me was how they operate: Employee ownership – giving workers a real stake in the business creates commitment and innovation from the ground up.
Their successful business model which has an £110 million turnover directly supports 600+ local jobs and dozens of regional suppliers, keeping wealth circulating in Devon communities.
The are also creating climate resilience, by understanding how their regenerative farming practices isn’t just environmental stewardship, but that they actually reduce input costs and weather volatility risks. There are a huge number of businesses across the country who are operating in a more ethical way, or striving to, and my Bill will hopefully mean that in future all business will have to consider their employees and the environment alongside their shareholders.
This week was also the vote on the Government’s Welfare Reform Bill. Despite the eleventh hour concessions made by the Government, it should not have taken a major rebellion to realise that these cuts would cause immense damage to some of the most vulnerable and risk creating a false economy by actually forcing some people out of work. The Government should have gone back to the drawing board. In the absence of any impact assessment, MPs did not have the full facts and those who will be affected were not consulted on these changes. Liberal Democrats continue to oppose this bill that risks stripping thousands of carers of vital assistance and leaving some of the most vulnerable without support.
It came as a shock that a huge portion of the Welfare Bill was removed during the debate in the house, with Stephen Timms confirming that MPs would not have to vote on the controversial PIP changes that had been tabled. As a result of this eleventh hour u-turn, the bill passed with a narrow majority of 75 votes. The scale of today’s rebellion shows that the Government is just not listening, and not delivering on the change that people are crying out for.
This Bill will still strip carers and the ones they care for of vital support whilst putting more barriers up to work not less. After years of the Conservatives losing control, the welfare bill needs to be brought down but this approach will create a false economy, putting more pressure on the NHS and social care.
It is time for the Government to take their fingers out of their ears and realise it is time to change course, taking the bold and ambitious steps needed to break with years of decline under the Conservatives. That does not start by trying to cut funding from carers and some of the most vulnerable and we will continue to oppose this approach every step of the way.