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'The promise of capitalism is broken': Top UK business leaders call for economic reform

Top business leaders have criticised the 'broken' capitalism of the business and finance sectors: EPA
Top business leaders have criticised the 'broken' capitalism of the business and finance sectors: EPA

A group of the UK's top business leaders have called for top-down economic reforms, claiming the "promise" of Western capitalist economies "has been broken".

Baroness Shriti Vadera, a former minister and current chair of Santander UK, said: "The underlying promise of western capitalist economies - that a rising tide lifts all boats - has been broken."

She was speaking at the FT City Network, which features a panel of influential figures from the worlds of finance, business and policymaking.

Her remarks were echoed by the likes of Robert Swannell, former chairman of Marks and Spencer, who said capitalism has "lost its way" with the pendulum swinging too far to focus on the short term and "shareholder value".

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According to the article in the Financial Times, Anne Richards, chief executive of asset management company M&G, said: "In the current era, best described as the 'age of anxiety', we will see capitalism rejected unless it finds a way of fundamentally addressing this anxiety."

The comments come weeks after Theresa May offered a defence of free market capitalism, emphasising the need for what she called a "balanced approach" to implementing austerity.

Jeremy Corbyn had earlier vowed to end the UK's "failed model of capitalism", promising rent caps and higher taxes on big businesses.

Other business leaders at the panel event said there was a serious issue with "short-termism", prioritising high profits over long-term strategy and draining productivity.

The panel agreed that to adapt to the modern world, capitalism was in need of a "reboot" or "evolution".