May looks to ‘reform capitalism’ after BHS failure

U.K. Prime Minister Theresa May is aiming to overhaul capitalism in the wake of corporate failures including the collapse of retail chain BHS, her spokeswoman told reporters.

A report by lawmakers published Monday blamed BHS’s former owner, retail billionaire Philip Green, for rushing through the sale of the chain to an unsuitable owner. Ms. May’s spokeswoman, Helen Bower, said it highlights the need to change the way business operates.

“The prime minister has already set out that we want to tackle corporate irresponsibility and reform capitalism to make sure it works for everyone, not just the privileged few,” Ms. Bower said at a regular briefing in London. “That means in the long run doing more to prevent irresponsible, reckless behavior.”

The prime minister’s office didn’t offer details of what’s meant by that, but “reforming capitalism” is a phrase Ms. May — who was visiting Belfast on Monday — used herself in 2013, when she gave what remains her biggest speech on her political philosophy. That argued for the state to take a strategic role in supporting industry and to protect consumers from abusive businesses.

Ms. May’s only detailed policy speech of her unexpectedly short campaign to be prime minister, delivered July 11, had similar themes. As part of an overall message of ensuring the country works for all, she promised to protect strategic industries from foreign takeovers, make companies put workers on their boards, force them to publish the ratio of pay for their highest and lowest earners, and make shareholder votes on executive compensation binding.

Elsewhere, Scottish First Minister Nicola Sturgeon said the U.K. seems to be heading for “a future outside the single market, with only limited access” following last month’s Brexit vote and said independence may be Scotland’s best option for stability.

The Scottish National Party leader said she’s basing her assessment on that Britain faces “a hard, rather than a soft, Brexit.”

Ms. Sturgeon’s comments came after Welsh First Minister Carwyn Jones said the semi-autonomous legislatures in Wales, Scotland and Northern Ireland as well as the U.K. Parliament should be able to veto any proposed deal on withdrawal from the European Union.