King’s Speech suggests ‘Labour may not keep its promises to drive growth in the real economy’ – London Business News | Londonlovesbusiness.com

Federation of Small Businesses (FSB) has said that the King’s Speech fell short on “getting growth” back in to the economy which was one of Labour’s manifesto pledges.

The FSB raised concerns that the 105 page briefing document does not “mention small business once,” this could suggest Labour may not keep their promises to drive growth.

Policy Chair of the FSB Tina McKenzie, said, the” King’s Speech announcements fell short on the central challenge – getting growth back into the economy and ensuring wealth creation in every local community.

“Small businesses and the self-employed expected more on these, with their key issues instead overlooked. The Government’s 105-page briefing document doesn’t mention ‘small business’ once – suggesting Labour may not keep its promises to drive growth in the real economy.

“Apart from ambitious-sounding planning reform, there was no sign of delivery of the small business plan promised by Labour in opposition.

“The lack of promised legislation to tackle late payments and poor payment practices by bigger businesses to their small business suppliers is the most serious omission for our community and will hold back economic growth. This scourge hampers cashflow and stifles investment, and we call on the Government to look again and deliver on the promise it made.

“The move from an Apprenticeship Levy to a Growth and Skills Levy will risk small business apprenticeships unless the Government quickly follows up with its promised unequivocal commitment to protect Government co-investment for apprenticeships at small employers.

“Similarly, the Industrial Strategy Council commitment omits mentioning the need for a small business voice, to prevent it being dominated by large corporate incumbent interests.

“At the same time, small businesses are increasingly worried about the developing employment rights package. More than nine out of ten small employers say they are concerned about the prospect of increased costs and risks when they employ people, and there were no commitments within this to look after small employers who will struggle the most.

“It is small businesses which take on those furthest from work and who must be the solution to labour market participation. Small firms must be given the right platform to recruit those out of work, create new jobs, and expand. There was nothing on this today, which suggests early signs of complacency on the need to back small businesses to resolve economic inactivity.

“The Government has before pledged to consult widely and openly on measures it has announced, and FSB will be working intensely on this over the coming months, and helping our community to deal with the more difficult challenges.

“As we look towards the Autumn, today’s speech piles pressure onto the Chancellor and Business Secretary for the Budget where progress must be made to achieve economic recovery and growth. Small businesses and the self-employed can drive this, but only if the right conditions are there.”