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Customers will be given a key role in the running of companies under a Labour Government, the party revealed today.

The eye-catching policy was announced as Shadow Chancellor John McDonnell unveiled a radical blueprint to overhaul how firms operate.

It could see shoppers, for example, sitting on a supermarket chain's powerful board and making crunch decisions on its running.

Plans in the 20-page document, Rewriting the Rules, include forcing companies to choose between having a “unitary or two-tier board structure”.

(Image: REUTERS)

Under the two-tier system, companies would have an executive board responsible for the day-to-day running of a company, with a “supervisory/stakeholder board that guides and monitor that executive board”.

The plan goes on: “The supervisory or stakeholder board is made up of stakeholders (such as customers, employees and long-term shareholders).

“It will be essential to ensure that the supervisory/stakeholder board does not become a body merely to be consulted, with inferior power.

“The supervisory/stakeholder board should have overall power to steer the strategic direction of the company.”

(Image: PA)

If firms opt for the unitary model, customers, employees and long-term shareholders would be given a set number of seats on the board.

Announcing the planned shake-up at general election speech in Westminster, Mr McDonnell said: “At the heart is our belief that every business should be a partnership between employees and customers, management and shareholders for the long-term success of the enterprise.”

He added: “In line with our commitment to building a stakeholder economy we aim to broaden the ownership base of UK businesses to give workers more of a stake in their company.

“There is evidence to show that this not only advances long-term decision making but also boosts productivity.”

He blasted the current system which, he said, fuelled high-profile recent corporate collapses.

(Image: AFP via Getty Images)

“There have been too many examples to demonstrate that the relentless pursuit of shareholder value has been to the detriment of workers, consumers, communities and our environment,” he said.

“The recent litany of Carillion, BHS and Thomas Cook are just recent examples of what happens when short-termism and corporate greed rule the roost.

“Several studies have shown how the short-term focus of many company shareholders and executives is a major reason for the poor performance of the UK economy.”

He also confirmed plans to “de-list” from the London Stock Exchange firms which fail to do enough to crackdown on climate change.

Mr McDonnell said: “Tackling the existential threat of climate change is Labour’s overriding priority as we enter government.

“If we are meet the climate change target to keep global warming to 1.5 degrees above pre-industrial levels, we need to ensure that companies are pulling their weight alongside government.”

British Chambers of Commerce co-executive director Claire Walker said: “It’s one thing to support employee ownership, stronger corporate governance and a transition to a greener economy, which have had positive impacts on many firms. But it would be misguided to impose a rigid, one-size-fits all approach.

“Getting our economy moving requires serious investment in skills, infrastructure and a reduction in business costs.

“But extensive government interference in ownership and governance could deter investors and damage confidence.

“Any incoming government must work more closely with businesses to transform the economy to benefit communities across the UK. Businesspeople want to play their part, but success will depend on partnership, not diktat.”