Chamber issues mixed response to King’s Speech
Chamber bosses have delivered a mixed response to the King’s Speech – praising moves to ease labour shortages but lamenting the lack of abolition of business rates.
Emily Stubbs (pictured), head of policy at the Greater Birmingham Chambers of Commerce, hailed reforms to the planning system as recommended by the recent Business Commission West Midlands’ Roadmap for Business Growth.
But she also called for “significant tax reforms” – including the pledged overhaul of business rates long demanded by industry.
Emily said: “Yesterday’s King’s Speech outlined the legislative priorities the Government is expected to focus on in the coming months to meet the pledges of their election manifesto and drive economic growth.
“Commitments were made that may go some way to ease labour shortages, such as those to get people back into employment post-Covid and reform the apprenticeship levy.
“The Government also set out legislative plans intended to unlock investment in energy infrastructure and reform the planning system – the latter being a recommendation of our Business Commission West Midlands’ Roadmap for Business Growth.
“Similarly, commitments to improve trading relationships with the European Union very much heed the calls of industry.
“The revival of industrial strategies is very much welcomed and will hopefully allow businesses greater certainty on the direction of travel. However, it will be critical to ensure that these have meaningful impact once developed.
“Changes to the Government’s proposed ‘new deal for working people,’ were the cause of some dispute earlier in the year. The legislative plan set out yesterday remains steadfast in its commitment to ban zero-hour contracts and increase day-one rights, which may raise some concerns among employers and will require detailed consultation with industry.
“Notably, and perhaps most disappointingly for businesses, significant tax reforms – including the pledged abolition of business rates – did not feature in the speech.
“Our latest Quarterly Business Report, launching today, highlights the unrelenting cost pressures Greater Birmingham Businesses are currently under, driven primarily by labour costs. Reducing cost pressures to unlock firm-led investment needs to be a priority if we are to see significant economic growth.”
Meanwhile, John Webber, head of business rates at GBCC patron Colliers also expressed dissapointed that there had been no change to the business rates regime.
He said: "We are very disappointed that there has been no mention of business rates reform in the King’s Speech today since this indicates this is not a priority for the new government and goes against its pledge to abolish the tax and support the high street.
"After more than 30 years of mismanagement from successive governments, we now have a system with a multiplier at over 50p in the pound, which effectively means a 50 per cent tax on property occupation, a complicated relief system with business rates deserts in some parts of the country and an appeal system that’s inefficient, lacking transparency and increasingly difficult for businesses to negotiate without an adviser.
"The current system is just not fit for purpose. This situation is unsustainable.
"With declining high streets across the country, there is no excuse for the new government to avoid addressing the business rates problem or to introduce significant reform.
"We urge them to act soon.”
Click here to read the Chamber's blog detailing the announcements made in the King's speech in full.
Find out more about the Business Commission West Midlands and read the Roadmap for Business Growth.
