Capitalism remains a force for good

Even before a Commons committee heard lurid allegations of threats to kill, theft and dishonesty, the demise of BHS was a dreadful tale reflecting badly on all those involved. Dominic Chappell, the company’s final owner, is a far from convincing figure. And serious questions remain about the conduct of Sir Philip Green, the previous owner, who could yet extract £35 million from a company that has collapsed with a £571 million deficit in its pension fund.

The same Commons business committee that questioned Mr Chappell yesterday earlier this week heard from Mike Ashley of Sports Direct, which stands accused of mistreating and exploiting its workforce. Inevitably, Labour has seized on these cases to further its ideological drive to fetter British business. Ian Wright, the committee chairman, speaks of Britain as a country of “Victorian working practices”. Jeremy Corbyn wants yet more laws to regulate businesses.

This cannot be allowed to go unchallenged. Business is the world’s most powerful engine of prosperity and progress: successful companies do not exploit their workers or pilfer their pensions, they make them richer. They also deliver cheaper, better products that improve the lives of customers. Whatever the failings of particular companies or individuals, capitalism as an economic system works and has delivered greater increases in human wealth, health and happiness than any other way of doing things.

When aberrant but eye-catching cases like Sports Direct and BHS hand ammunition to Labour, making the case for capitalism should be a priority for Conservatives. Sadly, some Tories appear too preoccupied with the EU referendum to join this vital battle. Worse, others are flirting with the same populist anti-business mood that Mr Corbyn panders to: Michael Gove of Vote Leave has suggested that Brexit would allow the Government to intervene more in markets. David Cameron told the Commons yesterday that Britain should stay in the EU in order to retain European employment rules – the very same rules he once promised to repatriate to Britain and dilute.

There is no excuse for companies breaking the rules by tampering with pension funds and mistreating staff, but the firms that do are the ignoble exception to a successful rule: profitseeking businesses make us all richer and more free. Conservatives should say so, loudly and clearly.