FTSE 100: 7269.55 ▼ -2.40 (-0.03%)
The Conservative party will pledge to increase punishments for company bosses who fail to manage their defined benefit (DB) pension schemes in its election manifesto.
In what was has been described by some as a 'Philip Green charter', prime minister Theresa May has also set out plans to block company takeovers if there is a risk the DB pension scheme will collapse.
Under the plans the Pensions Regulator (TPR) will be handed stronger powers to block takeovers, Sky News reports.
May said the proposals would 'ensure the pensions of ordinary working people are protected against the actions of unscrupulous company bosses'.
A government statement highlighted how 'several large, household-name companies have had their pensions put at risk by the irresponsible behaviour of bosses'.
The most high-profile of these cases involved the collapse of BHS after it was sold by Philip Green (pictured) to former racing driving Dominic Chappell. Green has recently agreed to pay £363 million into the scheme after a TPR investigation.
In response to the Conservative proposals Labour's shadow chancellor John McDonnell said the government was trying to catch-up with Labour proposals.
'Theresa May says she will bring in an "anti-Philip Green charter".
'Where was she when we called for Green to be stripped of his knighthood?
'This is the Tories running very slowly to catch up with Labour.'