Could proportional representation bring economic benefits?

Alert! Dangers ahead for business! This was the unmistakable message from this week’s Industry Forum roundtable on the potential benefits of proportional representation for the UK economy. Anna Dixon MBE, MP for Shipley, a long-term advocate of electoral reform, opened the meeting, which was attended by Industry Forum business members, academics and, as guests, a number of campaigning organisations including Make Votes Matter, Best for Britain and Labour For a New Democracy. The key new factor in British politics is that the old duopoly of power between the Labour and Conservative parties has dissolved into a complex multiparty system. The big risk for business is resulting economic instability as the first-past-the-post (FPTP) voting system turns UK national elections into a lottery. In 2024 Labour were big winners of this lottery with far more seats than their vote share. Next time the winner could be a minority government committed to reversing trade agreements, political alliances and infrastructure investment plans. Such a possible outcome can, even now, paralyse business planning and investment and undermine government growth plans. An alternative system of proportional representation could better represent voter wishes and would moderate policy swings. With the recent example of the severe damage to the UK economy caused by Brexit, this is clearly an issue that UK businesses need to take seriously. Radical change is always hard, but with the current economic and military threats to Europe, and the need for greater European unity, the case for bold action to reform our UK voting system appears strong.