Democracy4Growth

our open letter

From Board Members & Business Partners

We believe that the UK electoral system no longer serves the interests of UK business in generating growth.

In today’s challenging world, business and economic success requires a positive partnership between government and business. It is business that provides the basis for the economic prosperity of the country and of its citizens.

In order to flourish, to encourage effective planning and especially investment, business needs continuity and predictability. Yet over the past nine years, under six Prime Ministers, Britain has been subjected to six competing economic and fiscal “visions”. Our 19th century “First Past The Post” system has certainly not delivered ‘strong and stable’ conditions!

In the next general election we face the prospect of up to six parties fielding candidates in most seats, each party with wildly different ideologies, many ignoring long-term practical solutions, as each strives to pass the post, first. Whoever wins a majority of parliamentary seats, from perhaps fewer than 30% of votes cast, and therefore the support of only a minority of the eligible electorate, effectively gains 100% of the power and will likely force another ideological swing.

The UK’s consequent short-termist and unpredictable politics actively damages business confidence. It creates an understandable hesitancy to invest and discourages long term planning.

Almost all of the countries with which the UK directly competes for inward investment (many with a higher GDP per capita than the UK) have stable, consensus politics whose governments are formed by a coalition: as a British business leader recently noted, coalition governments foster a greater sense of cross-party agreement around big issues, “which means business can plan in budget cycles of 5 years and beyond”.

An electoral system that truly represents the electorate will be good for business, good for politics, and good for the British people, whether employed or not, and whether working in the public sector or dealing with the demands of commerce.

Signed in a personal capacity:

Signatories: -

Ahmed Hindawi CEO & Chairman Nagwa

Alice Lancaster Director Lankester Engineering

Andrew Dixon Director ARC InterCapital Ltd

Andy Parker Managing Director Elusive Brewing

Ash Nehru Founder Disguise Ltd

David Barbour CIO Pallant Capital

David Tarsh Managing Director Tarsh Consulting

Elizabeth Price Co-founder Carbon Re

Frank McKenna CEO & Group Chairman Downtown in Business Ltd

Geoff Eaton Former Chairman BPC

Hugh Lenon Senior Advisor Phoenix Equity Partners

Mark Petterson Director Warwick Energy Ltd

Mike Harris Founder Cribstone Strategic Macro

Naomi Smith Co-Founder and Director Cooler Heads Limited

Peter Norris Chairman Virgin Group

Pim Piers NED Palatine Growth Credit

Sarah Walker-Smith CEO Ampa Group

Sean Hanafin CEO Silver Birch Finance

Stephen Larkin CEO Africa New Energies Ltd

Tilly McAuliffe Owner, Director Think Publishing Ltd

Tracey-Ann Ginger Managing Director The Thrive Hive Talent Group Ltd

our ask of business people

Dear business leader.

We are seeking the support of board members or partners in UK-based going-concern enterprises for an open letter that we are planning to have published in the financial press within the next few weeks. You'll find the text of this letter above.

This letter presents the proposition that our current voting system of First Past the Post (FPTP) for the UK Parliament at Westminster gives us unpredictable governments. These can have wildly different economic, fiscal and regulatory agendas, be purposefully divisive rather than consensual and all based on no real mandate. We conclude that crucially, this arrangement materially inhibits investment and consequently growth.

This is exacerbated by there now being up to six parties with the ambition and the capacity to field candidates nationwide, resulting in the chance of one of them gaining a majority of seats on a minority (perhaps little more than 30%) of the total votes cast. The letter therefore calls for electoral reform to a more proportional system.

You’ll also find a rebuttal statement below that seeks to answer the more obvious objections to electoral reform.

If you are in agreement with the letter, please click on the link “Sign our business leaders' open letter”, and provide the details requested. We shall then add your name and details on the website as a signatory.

If you have more than one position, please mention only the enterprise with the greatest national economic impact.

As is made clear in the letter, all signatories are signing in their own personal capacity, as a businessperson of some experience and influence, and not on behalf of any company.

Obviously if you are willing to be a signatory, we would be also delighted if you would be able to recommend or refer this to any of your own business associates at board or partner level who might be willing to sign the letter. They can of course add their own details on the webpage in the same way.

Details of the four organisers of this letter are provided at the end of this webpage; we are not signatories of the letter since, whilst we are all former execs with a long and broad experience in business and enterprise, we are not currently board members or partners. That’s where we rely on people like you. We are however all UK citizens with a senior business background, committed to electoral reform, and have all felt the diminishment in investment, the inevitable failure of ambitions for increased productivity, and the consequent absence of growth.

If you feel that too, we hope you will be able to join us in this endeavour. Thank you.

Common questions and objections answered

Rebuttals

1. We’ve had enough disruption forced upon us by politicians – let’s not let ourselves in for even more.

We face today almost certain major volatility and disruption under the present set up. This is especially so given the arrival of multi-party politics and the see-sawing of parties – of whatever stripe - able to win parliamentary majorities on as little as 30% of the popular vote. We need to change the voting system from one suited to only two parties to one which will encourage consensus and cooperation not tribal division.

This isn’t forced on us by politicians - on the contrary we are having to force them! it’s a demand from at least 60% of the voting population (https://natcen.ac.uk/publications/bsa-42-britains-democracy).

2. I don’t see the return on this – years of turmoil for what? Politicians will be politicians however they get elected. We need to get them to understand what business needs – whoever they are and however they got into power.

Who says it’ll take years of turmoil? This could be done before the next election given the political will.. That’s why it’s crucial the business sector takes a stand. Governments pay attention to businesses, so if this Labour government hears us call for electoral reform, it will have to listen – and act to avoid the future turmoil of a large parliamentary majority based on minority popular support.

3. Saying ‘business needs electoral reform’ misses the point. We’ve had long periods of the type of stability you’re talking about under FPTP, so there’s nothing magical about ‘PR’.

There have been such periods – but the world has fundamentally changed due to many factors - the financial crash of 2007/8, Brexit, Trump’s tariff policies, major wars close to home and the fracturing of politics. The polarization we are seeing is magnified by a voting system geared divisively to just two parties, rather than finding consensual ground.

4. It’s not how you elect them – it’s what they do when they’re in power that counts. Governments tend to talk up the importance of business/court us at election time; but their actions – taxation, regulation – are an imposition and that won’t change just because you have a new electoral system.

Taxation and regulation also act as national goods, when handled by people who can plan sensibly and act for the long-term, rather than having an ‘until the next election’ mindset.

5. How would you go about changing the system. Royal Commissions? Referendums? How long would all this take and think of the uncertainty during the transition.

It’s not our domain to recommend processes -such as commissions or referendums. Our point is that change is needed and it has to happen as expeditiously as possible, compatible with taking the voting public along with you – and here there is overwhelming evidence that the UK public knows the present system isn’t working. It’s pushing on an open door frankly.

A National Commission is a possibility – and currently has the support of a large number of MPs from most parties - but needs to report back fast. Citizen’s Assemblies - see Ireland’s example might also be helpful on the route to parliamentary legislation.

6. The idea that changing the voting system would make everything better for business is woefully naïve and simplistic. Where’s your evidence? My UK operation is doing very well, I’m pleased to say, but I have colleagues in (Germany, Denmark…name a PR country!) who are fighting to stay afloat. That’s due to (reasons – downturns in demand, Trump trade wars, higher costs) nothing at all to do with politicians or voting systems.

While these issues are valid, they are worsened by governments which are primarily motivated by short term goals. A more representative and consensus-seeking government would not wave a magic wand, but it would offer a more reliable partnership to business.

About the authors of the letter

Stephen Gosling CBE

Stephen retired from running Europe's largest general aviation parts wholesaler in 2020 and Chaired the Liberal Democrat Business Network from April '22 to September '24. He has assisted Best For Britain's UK Trade & Business Council, is on the board of Make Votes Matter and is elected Vice Chair of Unlock Democracy.

Susanna Dammann

Stephen Gosling CBE

Susanna’s early experience in training senior business people in business communication skills gave her an excellent education in management and strategic thinking. This led to roles leading projects in Shanghai, Warwick University and the international quality assurance scheme Eaquals.

She is currently Chair of the Board of Make Votes Ma

She is currently Chair of the Board of Make Votes Matter, the campaign for Proportional Representation in the House of Commons.

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Michael Percy

After a career as an international banking director, CFO of a hi-tech constructor of zero-emission vessels, and as a NED (Chair of audit committees), Michael is currently a trustee of charities in the education, culture and leisure sectors, as well as an active member of Make Votes Matter and the Electoral Reform Society.

Keith Sharp

Michael Percy

In an international career in communications, marketing and branding, Keith has been based overseas as well as his native London. He was Europe Marketing Director for a global IT consultancy and, as its Vice President, negotiated with the UK Government as well as being a board member of the Industry and Parliament Trust. Keith is a longs

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the business case for reforming the uk's electoral system

our open letter

From Board Members & Business Partners

Signatories: -

our ask of business people

Common questions and objections answered

Rebuttals

Please enter your details to sign the open letter: -

Democracy4Growth

About the authors of the letter

Stephen Gosling CBE

Stephen Gosling CBE

Stephen Gosling CBE

Susanna Dammann

Stephen Gosling CBE

Stephen Gosling CBE

Michael Percy

Michael Percy

Michael Percy

Keith Sharp

Michael Percy

Michael Percy

Contact Us

Published in a personal capacity

Drop us a line!

the business case for reforming the uk's electoral system

our open letter

From Board Members & Business Partners

Signatories: -

our ask of business people

Common questions and objections answered

Rebuttals

Please enter your details to sign the open letter: -

Democracy4Growth

About the authors of the letter

Stephen Gosling CBE

Stephen Gosling CBE

Stephen Gosling CBE

Susanna Dammann

Stephen Gosling CBE

Stephen Gosling CBE

Michael Percy

Michael Percy

Michael Percy

Keith Sharp

Michael Percy

Michael Percy

Contact Us

Published in a personal capacity

Drop us a line!

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