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Queen's speech: Business issues

ePolitix.com Stakeholders comment on the business proposals laid out in the Queen's speech.

 

Stakeholder response: FSB

Federation of Small Businesses

To send a comment to the FSB click here

John Wright, FSB national chairman, said:

On education: "The FSB welcomes a more flexible approach to education and training for the 16 to 18 age group. Employers want school leavers that can read, write and add up. 

"They also want to employ people who can communicate and have the work ethic. At present, this is lacking in some school-leavers who are not fully engaged while at school.

"While we welcome the expansion of apprenticeships, we are disappointed that the government is not addressing the issue of engaging pupils in vocational subjects in school at an earlier age. 

"This would establish education, employment and training as a natural progression. 

"This would ensure that there will be no need for the government to feel the need to use the stick of compulsory training. The government must also begin to recognise the workplace training that small businesses already provide."

On local transport: "Any local congestion charging scheme must be approved by a referendum of local people within the relevant local authority's boundaries. 

"If the government and some councils consider that this is the right solution to a particular local problem then they must seek to explain that to the people and gain their consent. 

"A scheme that is not well designed could have disastrous effects on the local economy, which is why councils should not act without the consent of their voters."

On climate change: "Small businesses stand ready to do their bit to cut carbon emissions.  However, the government has to do much better at providing advice to them so that they can achieve this. 

"The balance between economic growth and environmental legislation must be maintained because only by increased investment in research and development by the private sector will we find solutions to the problems of climate change."

On energy: "Any changes to the energy infrastructure must ensure a secure and stable supply at a reasonable price.

"This has to be given priority over carbon reduction aims. 

"A secure, stable and affordable energy supply will underpin our economic growth. 

"This growth will be put at risk if arbitrary green targets are emphasised over a reliable energy supply."

On pensions: "We believe that the importance of individuals taking responsibility for their own retirement should be reflected in the new legislation. 

"Any new scheme must be affordable, easy to administer and introduced carefully to minimise the burden on businesses least able to cope with sudden increases in costs and administration.

"The burden on small businesses would be reduced if the new scheme could be run through existing payroll structures, rather than setting up a whole new system for employers to work out."

On criminal justice: "Plans for Youth Rehabilitation Orders, a new generic community sentence for young people replacing previous community sentences, are another useful tool for combating nuisance, anti-social behaviour and low level crime.

"The proposed Conditional Caution scheme will also be useful providing they are not used for repeat offenders where more serious penalties should be applied to match the severity of the crime. 

"Violent Offender Orders may also assist with the fight against violent attacks on shopkeepers. 

"Powers to close problem premises will also protect nearby businesses as long as they are about dealing with truly problem premises that are failing to work with police and not premises that are victim to problem customers, where support should be forthcoming from the authorities."

On planning: "We welcome the simplification of planning regulations as this will help small businesses make minor alterations to their premises and will assist the building trade.

"However, we have grave concerns that there may be less local input in major planning decisions and that such proposals will ease the planning process for large out-of-town developments that harm town centres and small businesses."

On easing the burden on red tape for businesses: "Any moves to ease the red tape burden on small firms will be of great benefit in theory. 

"Some small businesses fall foul of regulations innocently simply because they are so complicated. We welcomed the reviews into this subject under Hampton and Macrory and look forward to this Bill's implementation of their recommendations."

 

Stakeholder Response: CIPD

Chartered Institute of Personnel and Development

To send a comment to the CIPD click here

Charles Cotton, CIPD reward adviser, said: "For the proposals contained within the Pensions Bill to be successfully implemented, the government and the Delivery Authority must listen to HR professionals. 

"The danger is that too much attention is given to the design and not enough to the implementation. 

"Communicating pensions effectively to the workforce, and therefore engaging employees is crucial. 

"CIPD research shows that the more effort that is made when communicating with employees about pensions, the more they value them. 

"HR professionals have the knowledge, experience and day to day contact with employees to make a success of these proposals. 

"A failure to engage properly with employers will leave these proposals dead in the water."

 

Stakeholder Response: Association of Chartered Certified Accountants

ACCA said: "ACCA warns that the legislative programme announced in the Queen’s Speech today risks expanding further the regulatory burden on businesses.

"While many of the new business initiatives are well-meaning, in some cases the balance of responsibility for implementing them is weighted too heavily towards businesses themselves.

Education and Skills Bill

"Providing a legal entitlement for all adults to literacy and numeracy training is a positive step in the direction of improving the economy’s pool of skills and helping those who are currently excluded from the workforce back into work.

"ACCA welcomes the government’s commitment to legislate to ensure this happens: ACCA is currently supporting financial literacy by sponsoring the Open University’s 'You and your money' financial literacy course.

"ACCA, however, is concerned that the proposed legal requirement for employers to provide education and skills training for employees should not become another burden on business, especially those SMEs who could least afford it.

"To work properly, this initiative needs to be supported financially by government."

Climate Change Bill: Cutting carbon dioxide emissions

"Creating a long-term statutory commitment to cut the UK’s emissions by 60 per cent by 2050 remains an ambitious target.

"ACCA says that climate change reporting must be a crucial element in the strategy to achieve carbon emission targets.

"Carbon reporting responsibilities must be placed on public authorities and private businesses which pose the greatest risk of environmental damage."

National Insurance Contributions Bill

"Reforms to modernise the tax and benefit system are welcome. But the alignment of the Upper Earnings Limit (UEL) for Class 1 National Insurance Contributions (NICs) purposes must not be a pre-cursor to future tax increases."

Pensions Bill: A slow move towards a new pensions system

"ACCA is pleased to see the remaining provisions of the government’s pensions reform package being taken forward.

"However, ACCA is concerned that the new national pension savings system, in which all employees who do not currently save for a pension will be automatically  enrolled, could undermine employers’ commitment to running good occupational schemes.

"The government’s long-term plans for the future of pensions will depend on persuading employers to keep faith with their occupational schemes, which are likely to continue to provide a higher level of retirement benefit, rather than to direct their staff to the new scheme."

Regulatory Reform Bill: Reducing burdens for business

"This offers the opportunity for meaningful progress to be made with regard to business burdens imposed by local authorities. ACCA believes that it could be a step in the right direction if enforcement practices are made more consistent and effective.

"In the light of the government’s previously-announced commitment to reducing business burdens, ACCA is concerned to avoid new burdens being brought in to replace those that are being cut back.

"While ACCA does not oppose proposals such as those to extend work-life balance provisions, and the new initiative on pensions, it would be wrong to place too great a responsibility on employers to put these plans into action.

"A light regulatory touch is needed to ensure entrepreneurs and businesses are able to operate in an increasingly competitive environment."

Published: Tue, 6 Nov 2007 12:23:45 GMT+00