The CBI today (Wednesday) gave its reaction to legislative proposals for this Parliamentary session, announced in the Queen's speech.
The CBI's Deputy Director-General, John Cridland, said: “The Prime Minister has rightly focused on measures affecting the economy in this year’s Queen’s Speech. It is important that government policies assist businesses facing the credit crunch without placing unnecessary administrative burdens on them, which cost time and money, and stop companies focussing on the important challenges they face.”
On the Banking Reform bill, he said:
“The Banking bill should help restore the effective functioning of the financial system by ensuring bank stability and deposit holder protection. It rightly includes a quick and decisive mechanism to deal with banks that enter financial difficulties. This should be welcomed by savers and businesses.”
On the Children, Skills & Learning bill, he said:
On flexible working:
“New legislation means that an extra 4.5 million employees will have the right to request flexible working. We understand the reasons for this, but we think that the decision to implement this policy in April rather than later in the year is a mistake. It will place an extra administrative burden on companies at a difficult time, when they are already struggling to cope with the economic downturn.”
On training:
“Employers invest £39bn every year in staff training and regularly discuss skills and training needs with their employees. The right to request training will build on this existing good practice but the proposals must ensure employers only accept requests for business relevant training, to help build a stronger skills base and a more competitive economy.”
On apprenticeships:
“Government must seize this chance to make all young people aware of the opportunities apprenticeships can offer but it must not deter employers from getting involved, especially in the current economic climate, and ensure there is flexibility and minimum bureaucracy in the system.”
On the Business Rates Supplements bill, he said:
“Additional funding is needed for big infrastructure projects, especially Crossrail, but now is not the time to bring in new powers to raise tax more widely from business.
“The CBI wants, at the very least, for firms to be able to vote on every proposed local business rates supplement, so firms aren’t saddled with a potential £1bn annual tax increase without a proper say in the process.”
On the Equality bill, he said:
“Progress has been made in reducing the gender pay gap, although there is still much to do to. But mandatory pay audits would be heavy-handed and add bureaucracy without tackling the core, underlying causes of gender inequality. Better careers advice is needed to help young women choose more financially-rewarding careers, and improved advice on parental rights and better state-funded childcare are also essential to promote gender equality in the workplace.
On equality when procuring public services:
“We agree that procurement can be an effective lever to improve equality but the focus should be on achieving outcomes both in terms of equality and public services, rather than prescribing the individual practices of the private provider. Clear, simple and consistent guidance is needed for businesses to bid for public contracts effectively.”
On Welfare Reform bill, he said:
“The CBI welcomes the new Welfare Reform bill. The current economic climate makes an effective welfare-to-work sector more important than ever. This Bill will put in place a new framework to deliver personalised support and expert provision from the public, private and voluntary sectors, which is necessary for a successful system.”
On Local Democracy, Economic Development & Construction bill, he said:
“The CBI supports the Government’s attempts to streamline the regional tier of governance and create a single integrated regional strategy to drive economic development. However, we cannot become obsessed by structures and processes and must ensure that this reorganisation results in enhanced economic development, especially at this difficult time.”
On Coroners and Justice bill, he said:
“We support the Government’s decision to refrain from extending the Information Commissioner’s inspection powers to the private sector, in keeping with the Hampton principles of better regulation. There was a danger that such a disproportionate enforcement action would have distracted companies from adopting the right approaches to data handling. A cooperative approach is more likely to lead to businesses adopting good practice.”