Member Article

Deregulation and national insurance cuts, announces Queen

The Queen has opened Parliament, setting out the Government’s plans for the year ahead.

During the State Opening of Parliament the Queen’s Speech included details of bills that will pass through parliament, many of which have trailed for some time.

For business, the Queen announced a bill to ease regulation and provide for protection of intellectual property, as well as a cut to national insurance contributions to boost recruiting of new employees.

Among the other legislative priorities are a flat-rate pension and stiffer penalties for employers exploiting illegal labour, and private landlords who fail to check the immigration status of their tenants.

Legislation to enable the building of the High Speed Two railway line was also touched upon, along with measures to improve UK procurement of defence equipment.

The Queen said: “My government is committed to building an economy where people who work hard are properly rewarded.”

She also added: “My government’s first priority is to strengthen Britain’s economic competitiveness. To this end, it will support the growth of the private sector and the creation of more jobs and opportunities.

“My ministers will continue to prioritise measures that reduce the deficit – ensuring interest rates are kept low for homeowners and businesses.”

John Cridland, CBI Director-General, said: “Business does not need a raft of new bills at this stage of a Parliament. You cannot legislate your way to economic growth – laws are only ever one piece of the jigsaw.

“With only two years to go until the next election, business needs delivery on the ground not time-consuming new bills that will have little or no impact before 2015.

“Ministers must focus on driving up exports; getting finance to firms; cutting costs and red tape; and boosting the construction industry, through housing.”

North East Chamber of Commerce director of Policy, Ross Smith, said: “There are some positive measures in the Queen’s Speech that businesses will welcome, including the removal of excessive regulation, the simplification of patent protection laws and measures to reduce National Insurance Contributions.

“However, businesses aren’t going to get excited about a legislative programme setting out measures that probably won’t come into effect or show any significant benefit for firms for another two years.

“The Government’s focus must remain on publicising and making more of the positive schemes it has already introduced that can make an immediate positive impact for businesses.

“It must also urgently progress the Energy Bill, which is being carried over from the previous session. It is critical that we get some sort of clarity on this Bill as soon as possible.”

This was posted in Bdaily's Members' News section by Tom Keighley .