Business West, the organisation that runs the Swindon & Wiltshire Initiative, has described this week’s Queen’s Speech as ‘bittersweet’, with positive measures counter balanced by risks linked to the EU referendum.
The speech, which set out the new Government’s legislative programme for the year ahead, included a number of major measures which will impact on businesses.
And while efforts to promote enterprise and encourage growth by cutting red tape were welcomed by Business West, it stressed that the in-out EU referendum cast a shadow over them.
Managing director Phil Smith
, pictured, said: “Businesses across the South West watched with keen eyes as the new legislation was announced, including a new fresh batch of laws to incentivise growth.
“But for many firms it was bittersweet, as positive measures such as reducing red tape and more devolved powers locally will be counter balanced by the uncertainty that an EU referendum will bring.
“Our economy lies at a crossroads and the message from business is that it’s vital for these new laws to translate into growth on the ground, with increased employment and investment.”
There was no doubt that the referendum would cause uncertainty, he said, not only over the result itself but also what people would be voting for.
“The Scottish example last year showed that referendums have the ability to intensify UK political risk and heighten investor nervousness,” he said. “The Government has stressed that there will be a renegotiation of terms ahead of the referendum, but there are many unanswered questions as to what these terms will be.”
Business West research showed a majority of businesses in the region favour EU membership, with 77% of businesses saying that they want to stay in a reformed EU.
Business West is to now survey the business community again, asking what impact the EU has on their trade, how they plan to vote and what risk is posed to their business if the UK were to leave the EU.
The Enterprise Bill included in the Queen’s Speech – and which was trialled by new Business Secretary Sajid Javid on his visit to Bristol last week – was welcomed by Business West.
“It is great to see the Government start the Parliament with a real drive to support businesses,” said Mr Smith. “Measures to cut red tape for business by at least £10bn in the five years of this Parliament could make a real difference – saving both time and money.”
But he added: “Businesses have been let down by successive governments promising to make inroads, so we will be watching carefully to make sure these proposals are delivered. To further free companies up from red tape and focus on growth, businesses will now expect to see a similar commitment from Brussels.”
The promise of more devolution to English cities through a planned Cities and Local Government Devolution Bill, offered a “once in a lifetime chance for our region to seize control of its economic future”, said Mr Smith.
However, Bristol and the West of England appeared to be far behind other English cities in their readiness to exploit this opportunity.
“This could make it harder for our region to get attention from national Government and gain access to limited future growth and investment funding,” he said.
“Local leaders must ensure we are not left behind and co-operate to set out ambitious plans to use devolved powers to deliver further economic growth and the long-term investment we need.”
The extension of the Right to Buy to housing association tenants in a new Housing Bill was also questioned by Business West.
“One of the major challenges for the Government this Parliament will be to substantially increase the number of houses being built,” said Mr Smith. “We are concerned that the unintended consequences of extending Right to Buy could be to make it harder for housing associations to borrow and invest, negatively impacting on our region’s ability to build the new homes we need.”
