Queens Speech

Queen’s Speech for pro-business Brexit but light on domestic reform

The Queen’s Speech has set out a programme of reform for the next two years to prepare the UK to leave the European Union and shore up small business confidence.

FSB’s latest Small Business Index shows a slide in small business confidence for the first time in the wake of the EU referendum. Small firms want to see measures which prove this Parliament backs them to drive growth and create jobs for the UK economy.

Mike Cherry, National Chairman at the Federation of Small Businesses (FSB), said:

“We are pleased with the ambition to provide certainty for businesses as we head towards Brexit and the commitment to low taxation. This is vital for small firms who are facing both uncertainty and rising costs of doing business. A thriving small business community, helped to grow by a supportive government, will be crucial to a strong post-Brexit economy. But it is disappointing that this Queen’s Speech was light on other domestic measures for small business. The government must knuckle down to tackle issues such as reform of the Business Rates system and changes to Corporate governance, to stop big companies badly treating their small business suppliers and contractors.”

On Brexit

“The raft of Brexit Bills announced today must prioritise free and easy trade, and ensure small firms can access the skills and labour they need after the UK leaves the EU. It’s good to see the commitment to special support to help British businesses export to new markets around the world, which we look forward to engaging with the government on. Small firms will be looking to the Immigration Bill to provide the UK with an immigration system that is responsive to the needs of employers, and there should be a transition period to any new system of at least three years after Brexit.

“The Bill to repeal the European Communities Act gives certainty to small businesses in the short-term that Brexit will not mean sudden big changes in regulation. On this, it is vital that there is no cliff-edge moment, even though in the long term Brexit provides an opportunity to simplify complicated Brussels processes to make rules much easier to comply with.”

On the Industrial Strategy

“The modern Industrial Strategy must deliver on major infrastructure projects, such as the second phase of HS2. This is important to the UK remaining competitive globally. Large-scale infrastructure projects must be matched with investment in local roads to boost UK connectivity and growth. We welcome the commitment to make good on radical reform to technical education and training to deliver the skills that small businesses need.

Energy and Motor Insurance Bills

“We will be closely watching to see that legislation to reduce motor insurance premiums and energy prices also applies to microbusinesses, who struggle just as much as consumers with their bills.”

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