Queen’s Speech reaction: Government slammed over lack of detail and certainty
The government has been criticised for failing to provide any real details in today’s Queen’s Speech that would have offered British businesses certainty.
As part of the state opening of parliament, the government set out 22 bills which will form the basis of its domestic policy, with the Queen confirming a Hallowe’en Brexit was Number 10’s “priority”.
But the lack of detail – which many have suggested is a sign that Prime Minister Boris Johnson will renew his efforts to hold a General Election this side of Christmas – was seized on by business groups as exacerbating uncertainty.
Michael Taylor, chief economist at the Association of Chartered Certified Accountants, said the trade body was “disappointed that the speech contained little detail on domestic policy and more importantly none on the terms of Brexit”.
He added: “ACCA’s own economic research has highlighted low economic confidence in England, Scotland, Wales and in particular Northern Ireland and the Irish Republic.
‘We await the outcome of the debate and subsequent Queen’s Speech vote this week. The lack of clarity only signals that a general election is imminent – taking business yet again away from the crucial certainty that they need.”
Adam Marshall, director general of the British Chambers of Commerce agreed.
“These are unnerving times for businesses facing Brexit uncertainty, global headwinds and a UK economy in stasis,” he said. “The government’s economic plan must be grounded in reality, taking into account the conditions facing firms and the need to minimise further disruption.
“Amidst the ongoing political turbulence, businesses can’t afford for government to lose sight of its responsibility to create conditions that support growth and boost investment – much of which doesn’t require new primary legislation.”
Federation of Small Businesses (FSB) National Chairman Mike Cherry, claimed the speech was “a stark reminder” of the neglect of domestic challenges as Brexit had absorbed government resources.
“There are proposals to welcome within the Bills unveiled today but – unless we reinject some stability into parliamentary proceedings – they may never become reality,” he said. “Concrete action is needed at the upcoming Budget to help small firms handle spiralling costs linked to business rates and employment.
“We have the legislation to enable Brexit, we now need to see negotiators pulling out all the stops this week to reach an agreement that secures a transition period, protects access to trade and skills, and can command a majority in the Commons. Small business owners are sick to the back teeth of uncertainty.”
But even in areas where there was detail, the government came under fire. Mark Littlewood, director general at the Institute of Economic Affairs, said the Queen’s Speech “highlighted some worrying interventions… which would place too much emphasis on the role of the state, and not enough of the role of free markets”.
He noted the immigration bill would “centrally plan and control the labour market” through the Australian-style points system, which he said was “less preferable and less efficient than a visa system”.
However it was not all bad. Miles Celic, chief executive of TheCityUK, welcomed the Financial Services bill, which he said recognised the sector’s role as “underpinning the UK’s future economic success”.
“It is now vital that the UK and the EU more forward together to secure a Brexit withdrawal agreement which will minimise economic disruption and allow us to move on to the shared priorities of the future economic relationship.”
Main image: Getty