Business says Queen’s Speech is missed opportunity
LEADING businesspeople last night criticised the government for “not going far enough” to reform labour laws and boost growth in yesterday’s Queen’s Speech.
Although the government said its “first priority will be to reduce the deficit and restore economic stability” radical reforms of employment tribunals were missing, along with bills for the High Speed Two railway and a British business bank.
Entrepreneur Luke Johnson of Risk Capital told City A.M. that while he welcomed some of the changes in the Enterprise and Regulatory Reform Bill much more could be done: “The current system inhibits people. If we want to create jobs we have to make employment less painful if it goes wrong.”
“I fear that because it’s a coalition the Conservatives were unable to get some of the improvements that employers, entrepreneurs and wealth creators would have liked to have seen so they can start taking on staff.”
Jon Moulton of Better Capital said the proposals represented “a touch of progress”.
“In finance you’re dealing with situations where incompetence and corruption are both quite common. You’re often in a situation where you are blackmailed into making a payment because it’s cheaper than enduring all the processes of employment tribunals and hearings.”
“I’d like to see an effective attack on regulation rather than merely threatening to do so. We have a government that said it was going to reduce regulation but we have the thickest finance bill ever,” he added.
The Queen’s Speech also included a pledge to allow mothers and fathers to share parental leave, prompting Sheila Fahy of law firm Allen & Overy to comment: “Sounds like great news for parents. Sounds like a nightmare for employers to administer.”
John Longworth of the British Chamber of Commerce echoed this view, saying the proposal “brings fiendish complexity and huge uncertainty for employers” and could damage the economic recovery.
“Businesses may now be exposed to endless appeals, legal challenges and grievances. The government has promised to cut red tape, but continues to tinker with employment legislation, bringing uncertainty and costs to businesses,” he added.