Westminster corruption scandals may have a serious economic cost – Scotsman comment

Scandals over political corruption tend to focus on the moral failings of those involved. But the economic consequences should not be overlooked.

The UK needs to maintain its good reputation for relatively little political corruption (Picture: Bruce Bennett/Getty Images)

As it published its annual prosperity index, the Legatum Institute warned that a “deterioration of political accountability” had damaged the UK’s standing in the world. The UK was in 13th place on the index, the same as last year, but down from tenth in 2016.

The institute’s chief executive, Tory peer Baroness Philippa Stroud, said the UK’s prosperity had been built on “a firm foundation of the rule of law, open markets, respect for freedoms and personal responsibility”.

“But the first warning lights are beginning to flash for the UK,” she warned. “… good governance and democratic institutions are crucial too, if we want the UK to become increasingly prosperous. And after the parliamentary events of the last two weeks, now more than ever we need a strong and credible Parliament in the UK that reasserts itself and ensures the executive is held to account, so that those who govern do so according to the principles of the rules of law.”

MPs taking money from companies to lobby for their interests is not just a moral failing. It could discourage multinational companies thinking of investing in a new factory or office from doing so if they feel they need to buy up some politicians or risk losing out to rivals who do. Apart from being an added business cost, it could also be a breach of their own ethical standards.

The UK has an excellent reputation for its adherence to the rule of law and basic standards. We must not lose it.

A message from the Editor:

Thank you for reading this article. We're more reliant on your support than ever as the shift in consumer habits brought about by coronavirus impacts our advertisers.

If you haven't already, please consider supporting our trusted, fact-checked journalism by taking out a digital subscription.