BCC reaction to the Queen’s Speech

Commenting on the Bills announced in the Queen’s Speech today, David Frost, Director General of the British Chambers of Commerce (BCC), said:

“We are pleased that the Government is prioritising a reduction in the budget deficit – and that it has broadly chosen to avoid placing additional regulatory burdens on wealth-creating businesses.

“Over the coming weeks, we will be judging the Government’s performance against the delivery of a clear plan to enable business growth. The age of the public sector has come to an end – and the Government must now focus on measures that enable private-sector growth, which will return the British economy to health.”

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Media Contact:

Sam Turvey
Tel: 020 7654 5813
Email: s.turvey@britishchambers.org.uk

Notes to Editors:

Further comment from David Frost on specific Bills and Consultations in today’s Queen’s Speech:

National Insurance Contributions Bill
"We are pleased that the Government recognises the importance of reversing the rise in employers' National Insurance Contributions. The partial roll-back they have agreed is a very positive step, but in order to encourage employment and business growth, the Government should go further and scrap the rise in its entirety."

Office of Budgetary Responsibility Bill
“Our members have repeatedly told us that a clear deficit-reduction strategy would do more to increase business confidence in the UK than any other measure. The Government has made some positive early steps, setting out initial cuts and preparing the ground for more deficit-cutting measures.

“If an independent Office of Budget Responsibility enables clear forecasting and transparent and swift action on the deficit, businesses will support it.”

Decentralisation and Localisation Bill
“Business has a crucial role to play in shaping local and regional economies across the UK. As the Government takes forward its programme for decentralisation, we urge Ministers to give businesses a greater role in local decision-making – and to remove some of the local barriers, such as over-zealous planning restrictions, which prevent local business growth and expansion.

Business – which values certainty and speed – is extremely disappointed with the Government’s plan to abolish the Infrastructure Planning Commission. Equally, we have serious concerns over any proposals that further restrict businesses’ ability to get job-creating applications through the planning system. Only a faster, simpler planning system, with economic growth as its key goal, will do.”

Financial Reform Bill
“As the Government moves to reform financial services, it must ensure that there are no unintended effects on British companies, which depend on a stable banking system for credit and financing. Moves to improve access to finance for smaller firms – the engine room of our economy – will be welcomed by many within our membership.”

Energy Bill
“The BCC’s infrastructure survey made it clear that business is preoccupied about Britain’s energy security. Business wants to see new nuclear, wind, and renewable energy infrastructure proceed as soon as possible. The coalition must give a clear signal that the previously-announced and much-needed nuclear power stations will go ahead. Otherwise, the UK may lose major nuclear industry investors – and the jobs that come from running and supplying these and other new energy generation facilities.”

Public Bodies (Reform) Bill
"Business will support moves to reduce the number and size of public-sector bodies currently operating around the country. We urge the Government to avoid creating new bodies – and avoid constant re-organisation of those that continue.”
 
Migration cap
“Business’s top priority is to ensure that it can hire appropriately skilled workers when they are needed – a critical factor in Britain’s future economic growth. An arbitrary cap on economic migrants would have consequences for businesses that need specialist skills at a specific time. We urge Ministers to exempt highly-skilled workers from any migration cap, so that British companies can hire the best possible staff to promote growth.”

Broadband
“We welcome moves to extend high-speed broadband across the UK. British business wants and needs a super-fast broadband infrastructure that brings us into line with our major competitors. The UK must be at the forefront of the digital revolution, rather than continually playing catch-up.”

High Speed Rail
“Business enthusiastically supports high-speed rail. We are convinced that it will offer major economic benefits to regional economies across the UK. However, we disagree with the Government’s view that HSR would eliminate the need for additional aviation capacity at Heathrow and throughout the South East. We need both a top-class rail system and a top-class international aviation hub in the UK in order to continue to attract business investment from overseas.”

Airports Economic Regulation Bill
“Business is clear that there is a need for more aviation capacity in the South East – and that Heathrow, in particular, must have the infrastructure needed to serve as a premier international hub. The Government’s decision to rule out any new runway capacity in the Greater South East is disappointing, and will need to be reconsidered.”

Flexible Working and Equal Pay
“Businesses across the country already offer flexible working – with a huge majority honouring employees’ requests to work in a different way. Additionally, businesses are committed to offering equal pay for equal work.

“We do, however, have serious concerns over any additional Government regulation in this area, whether this occurs now or in the medium-term. Given that businesses and Government are working closely together on non-legislative solutions, the key is to avoid compulsory, tick-box exercises that add new costs and bureaucracy for businesses.”

Welfare Reform Bill
“Given that unemployment is currently over 2.5 million, the priority must be to get people skilled for work – and into work – as the private sector once again begins to generate jobs.”

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The BCC has published its 90 day plan for business growth – it can be accessed here.

The British Chambers of Commerce (BCC) is the National Voice of Local Business.
The BCC sits at the heart of a powerful nationwide network of Accredited Chambers of Commerce serving business across the UK, which employ over five million people