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Business owners know that, regular as clockwork, the sovereign – or occasionally a delegate in her place – will address the nation to mark the Government’s legislative programme for the weeks and months ahead.
But with the new coalition government coming to grips with power sharing, and a number of questions on the details of enterprise policies still unanswered, many who watched the new administration’s inaugural queen’s speech seeking genuine clarity were left disappointed, hoping instead that the ‘emergency budget’ on 22 June will lift the clouds of uncertainty once and for all.
In truth, some of the government’s emerging business and employment policies were addressed directly in the speech. Much of it had been common knowledge for days before.
The proposals for the right to request flexible working are fine – providing employers’ rights to refuse a request on solid business grounds remains enshrined. But without the fine detail, or ministerial statements confirming this will be the case, it is anybody’s guess.
Further, the plan for a referendum on any future EU treaty will no doubt be welcomed by the many small business owners who resent the regulations imposed on them by European law.
Following a concerted campaign from business groups we will also see the planned rise in employers’ National Insurance contributions partially scrapped, effectively meaning smaller employers will be spared an unreasonable tax on jobs for most of their staff.
But despite commitments in the speech to creating a ‘fairer and simpler’ tax system for workers and businesses, particularly a reform of corporation tax, we still do not know if this will effectively mean a cut in the higher rate paid by big businesses while simultaneously increasing the lower rate for small firms, as per the previous government, or changes that make the UK a better place to start and grow businesses.
The Government plans to create an independent office of tax administration to simplify tax while pledging to reduce regulation at the same time. Experienced entrepreneurs will welcome the intention but point out the apparent practical contradiction of such developments.
Other areas outlined the speech included energy, broadband speeds and post offices. It is true that these issues directly affect small businesses, particularly in rural areas, but all eyes are now on the coming budget for that elusive policy detail and the clarity that will allow business owners to look firmly into the future.
