Executive Pay

In response to the campaign on executive pay, David said:

"As you may be aware the Government has now announced its plans on corporate governance reform following a thorough consultation process. A focus of these reforms will be to tackle abuses and excesses in the boardroom, specifically that of executive pay.

Previous reforms introduced by the Government in 2013 have gone some way to strengthening and increasing transparency in the UK executive pay framework - in particular the requirement to gain shareholder approval for executive pay policies every three years and the need to disclose the pay of each director as a single figure. However, I appreciate that executive pay has continued to be a key factor in public dissatisfaction with large businesses, and a source of frustration to UK investors.

That is why action is being taken which will address concerns that a minority of companies are not responding adequately when they encounter significant shareholder opposition to levels of executive pay. Under new measures the Government will name listed companies on a public register if 20 per cent or more of their shareholders revolt over proposals for executive pay package.

In addition, the Government will require listed companies to reveal the pay ratio between bosses and workers. At the same time, remuneration committees will be made to do more to engage with the workforce to explain how pay at the top relates to wider company pay policy. The Financial Reporting Council has also been asked to revise the UK Corporate Governance Code to extend the recommended minimum vesting and post-vesting holding period for executive share awards from three to five years to encourage companies to focus on longer-term outcomes in setting pay."

Keep Pubs Afloat

In response to the Keep Pubs Afloat campaign, David said:

"Pubs play a crucial role in the social and economic life of our nation. The British Beer and Pub Association estimate that each pub contributes £80,000 each year to its local economy. I am glad that the pub sector is being supported in a range of ways.

Through the Asset of Community Value scheme, communities can list facilities of local importance, such as pubs. This means that if a pub owner wishes to sell, the community has six months to come up with a plan and funding in order to try to save it. There are now around 2,000 pubs across England listed as assets of community value.

Many pubs have also benefited from the Government’s package on business rates for small businesses. The Spring Budget also provided a £1,000 discount on business rates bills in 2017 for pubs with a rateable value of less than £100,000 – 90 per cent of pubs in England.

Tax on beer will only increase by RPI inflation this year, in line with previous forecasts. This follows the removal of the beer duty escalator in 2013 and the unprecedented freeze in beer duty.

There is also greater flexibility on weights and measures, allowing beer and wine to be sold in different sizes. It easier now for pubs to play live music and £350,000 has been provided for the Pub is The Hub initiative and the Plunkett Foundation to help landlords diversify and provide essential services such as village shops and post offices."

More information about the campaign can be found here.