THE Government is preparing to take action to tackle problems with executive pay and accountability and ensure employees have “a voice” in company boardrooms, Prime Minister Theresa May has announced.

But, in a speech to the CBI in London, Mrs May said she wanted to “work with the grain of business” and made clear the planned changes will not include the direct appointment of workers or trade union representatives to boards.

The TUC said it was disappointed with the plans.

Just two days ahead of Philip Hammond's Autumn Statement, Mrs May also set out plans to assist business, including her ambition to ensure the UK has the lowest corporate tax rates in the G20 group of advanced economies and measures to boost productivity.

And she offered to seek certainty for employees concerned about their future in the UK in the wake of Brexit, declaring she will seek an "early agreement" with other EU states on the status of UK nationals living elsewhere in Europe and EU nationals in Britain.

Asked if she had dropped plans for the direct appointment of workers on boards, Mrs May replied: “What I have clarified today is we have been very clear we want workers' representation on boards.

"There are a number of ways in which that can be achieved.

“We are going to be consulting with business this autumn about how that can be achieved alongside other issues of corporate governance, and we will be working with businesses up and down the country to make sure that what we arrive at is the best model, the model that is going to work for everybody."

However, Frances O’Grady, TUC general secretary, said Mrs May was guilty of “not delivering” on a pledge to allow workers to have a representative on company boards.

She said: “Theresa May made a clear promise to have workers represented on company boards.

“The proposals in her speech do not deliver on this.

“This is not the way to show that you want to govern for ordinary working people.”

Mrs May told the CBI the vote for Brexit reflected not only a desire to leave the EU but also a public demand for “change” in the way capitalism and the market system operate in the UK.

She added: “If we support free markets, value capitalism and back business - and we do - we must do everything we can to keep faith with them.”

However, she said the process would “take time” and stressed the Government would not “rush ahead” - in an apparent rejection of calls from some Brexit campaigners for a swift break from Brussels.

Her appearance on the conference stage came after CBI president Paul Drechsler had urged the Prime Minister to give greater clarity about the Brexit plan.

Mr Drechsler said firms were worried about “what happens on the day after Brexit”, with some companies “inevitably considering a cliff-edge scenario - a sudden and overnight transformation in trading conditions.”

Reacting to Mrs May’s speech, Carolyn Fairbairn, CBI director-general, added: ““UK corporate governance is admired across the world.

“Our businesses know that brilliant employee engagement, openness with customers and support for local communities are essential to success.

“But firms recognise public concerns.

“The challenge now is to take the great practice that we see in so many places and apply it everywhere, eradicating the unacceptable transgressions that some companies do make.

“On employee engagement, different approaches will work for different businesses but a starting point is firms being able to outline and explain what approach they are taking – whether that's employees on boards, employee committees, dedicated representatives, or other models that genuinely address the issue.”

Ms Fairbairn added she was assured Mrs May was willing to give further details of her Brexit plan.

She added: “The way in which we leave the EU and on what terms will be critical to jobs and investment here in the UK.

“It’s vital that the on-the-ground expertise of business is used to help get the best deal for the UK and we welcome the Prime Minister’s commitment to providing clarity on her negotiation plans, where possible.

“With only two years for such a complex negotiation, the Government rightly has on its radar that we should seek a smooth transition which gives firms time to adapt.”