New Enterprise Bill will reduce regulation, say Coalition chums
Restrictions on businesses are set to be relaxed as part of measures announced during the Queen’s Speech today, with promises to make the UK the one of the most business-friendly countries in the world.
Central to the business-centric speech today were promises to “reduce the deficit and restore economic stability”.
This aims is due to be implemented by reducing burdens on business by “repealing unnecessary legislation and to limit state inspection”.
“My Government will introduce legislation to reform competition law to promote enterprise and fair markets,” she said.
A statement from the Prime Minister highlighted the importance of a new Bill which will seek to cut red tape for businesses operating in the UK.
“We will continue to extend opportunity in our economy – with an Enterprise and Regulatory Reform Bill that will make Britain one of the most business-friendly countries in the world,” the Prime Minister said.
According to the Department for Business, Innovation and Skills (BIS), the Bill will focus on reducing regulations on business, alongside an “overhaul of the employment tribunal system”. This will give companies greater powers to hire and fire staff.
Business Secretary Vince Cable said that measures to secure economic growth through business investment are “absolutely vital”.
“Government’s plans to cut red tape, boost green investment, reform the competition landscape and reform the banks are vital moves that would help strengthen the business environment and boost consumer and business confidence,” he said.
Whether the actions taken are enough to push economic growth is yet to be seen. According to Confederation of British Industry director general John Cridland the test for the Queen’s Speech is if it will actually spur growth.
Apparently the “jury’s out” on whether the Enterprise Bill will do the trick.
Simon Walker, Director General of the Institute of Directors, doubted whether enough is actually being done to support business, with a lack of courageous action being taken.
“To restore business confidence, which is the real key to growth, there must be drastic measures to cut costly regulation and continue to tackle the deficit,” Walker said.
“Tweaking the edges of the system will not be enough – it’s not the number of Bills that matters, it’s what is in them that really counts.”
For tech firms the reduction in red tape could have benefits. A recent survey by Baker Tilly showed that tech business were concerned about regulation and red tape affecting business over the course of the year.