FSB: Business reaction to the Queen’s Speech

The Federation of Small Businesses (FSB), the UK’s largest business organisation, reacted in detail to the Queen’s Speech that was delivered today to Parliament.

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.”

Further comment on specific Bills will follow during the appropriate consultation periods.

ENDS

Notes to Editors:

1. Small businesses employ 58% of the private sector workforce, contribute over 50% of UK GDP and make up more than 99% of all UK businesses.

2. The FSB is Britain’s biggest business organisation with over 210,000 members. It exists to protect and promote the interests of the self-employed, and all those who run their own business. More information is available at www.fsb.org.uk.

Contacts:

For interviews with FSB Chief Spokesman Stephen Alambritis or other senior FSB personnel please contact the FSB Press Office.

FSB Press Office

Matthew Knowles: 020 7592 8113 / 07917 628991

Simon Briault: 020 7592 8128 / 07917 628998

Belinda Webb: 020 7592 8121 / 07825 125 695

For regional FSB contacts please go to www.fsb.org.uk/regions