Queen's Speech - Business and consumers

Crime: “UK small firms are experiencing an epidemic of business crime and it is right that this has taken priority at today’s Queen’s Speech. According to FSB research six out of ten businesses have been the victims of crime over the past year.”

Charities Bill: “Charity shops can be aggressive commercial institutions trading in similar products to small businesses, yet they continue to be exempt from paying business rates. The Charities Bill does little to level the playing field. It should address this unfair competition to ensure that Britain’s high streets have a vibrant and successful future.”

Stakeholder Response: Association of British Insurers

Today’s Queen’s speech includes many proposals that the ABI has been pressing for in recent months, including an encouraging sign that the government is moving quickly to address Britain’s pension problems and savings gap. Relevant Bills include the Regulation of Financial Services Bill, the draft Pensions Bill, the Regulatory Reform Bill, the Company Law Reform Bill, the Road Safety Bill, the Compensation Bill, and the draft Legal Services Bill.

With regard to the Regulation of Financial Services Bill, Stephen Sklaroff, deputy director general of the ABI, said: “With the equity release market set to grow, it is vital that consumers know that they are properly protected. We are pleased that the Government has fulfilled its promise to ensure that home reversion schemes will now be covered by the same proportionate regulation as lifetime mortgages.”

The draft Pensions Bill: “We are pleased that the government is showing signs of serious intentions to improve the state and private pensions systems following the election. “

The Regulatory Reform Bill: “The Hampton and Arculus reports offered a better way forward on regulation. We are delighted if the government is now following through with action.”

The Road Safety Bill: “Insurers have a direct interest in working to raise standards of vehicle and road safety. It is particularly good to see this determined effort to deter the use of mobile phones while driving. It is important that the Bill contains further provisions to tackle uninsured driving by making it an offence to keep a vehicle without insurance (unless the vehicle is kept off-road.”

The Compensation Bill: “While there are arguments about whether we have a compensation culture, there is no doubt that millions of people are acting as if there is one. This is getting in the way of ensuring that compensation goes to those who need and deserve it. All efforts to change this perception will be welcomed by insurers and our policyholders.”

The draft Legal Services Bill: “The government’s decision to regulate claims management firms is very sensible and will help improve our compensation system.”

Stakeholder Response: Energy Networks Association

A spokesman for ENA told epolitix.com: “ENA welcomes the commitment that the government are giving to reform of the UK regulatory framework. We must wait and see how this impacts on how the electricity and gas networks are regulated in the future and especially seen in the light of the machinery of government changes that are planned that would see parts of the DTI moved into the HSE.

“We will campaign to ensure that the regulatory structure envisaged is one that meets the needs of the 21st Century electricity and gas networks.”

Stakeholder Response: British Retail Consortium

Commenting on the Queen's Speech, Sarah Winterton, director of public affairs at the BRC, said: "The BRC welcomes the announcement of the Regulatory Reform Bill in the Queen's Speech today and the prospect of a reduction in red-tape for business.

"Retailers are looking for a regulatory framework which helps retailers deliver maintained and improved profitability, higher productivity and more innovation. The government has promised to lighten the burden of regulation and we now expect it to deliver through this Bill. Specifically, we want to see rapid progress in implementing both the Hampton report and the Better Regulation Task Force report 'Less is More'."

Stakeholder Response: Nationwide

Stuart Bernau, Nationwide's executive director, said: "The new Consumer Credit Bill provides a great opportunity for the Government to tackle bad practice and unfair lending.  The industry has made good progress in recent years in improving transparency, but it has to realise that sometimes transparency is not enough.

"Some practices, like applying payments to the cheapest debt first, remain unfair and can only be to the detriment of the consumer.  Any debt counsellor worth their salt would tell you to pay off your most expensive debt first, so why should credit card providers be allowed to ignore this principle?  I hope the Government will use this opportunity of a new Consumer Credit Bill to demand that the industry puts customers first.

"We welcome the announcement of a Bill to regulate home reversion plans, which is a positive step for consumers.  We have been warning for some time that without regulation, home reversion plans had the potential to be a mis-selling scandal in the future, especially given that customers are often elderly and sometimes vulnerable.  This Bill should create a level playing field for the wider equity release market and help protect consumers from unscrupulous sales practices."

Stakeholder Response: Finance & Leasing Association

A spokesperson for the association said: "FLA supports targeted measures which genuinely promote competitive, transparent and responsive markets built on responsible lending and borrowing. The previous Government secured a broad consensus on much of the Consumer Credit Bill. Early re-introduction would round off the debate and bring some much-needed certainty around the regulatory regime for consumer credit.

"The FLA will work constructively on the Bill to promote modern regulatory framework for its members. We are particularly concerned to ensure that out-dated laws on motor finance, which are detrimental to motor financiers and manufacturers and the interests of consumers, are included in the package of measures in the Bill. We have a strong case for reform in this area backed up by empirical evidence and legal analysis."

Stakeholder Response: Which?

Which? welcomes the return of the consumer credit bill, but urges the government and Parliament to treat it as a priority and to tackle three key areas: creation of a robust dispute resolution service for unfair credit agreements

Interest calculation methods; force credit card companies to have one method of calculating interest so that people can easily compare annual percentage rates (APRs);

full data sharing - include measures to improve responsible lending so that lenders have to share and use customers’ full credit history.

Emma Bandey, personal finance campaigner, at Which?, said: “There has been enough delay in introducing important changes to the consumer credit legislation. It’s time for Parliament to tackle outdated credit laws which are putting people at financial risk and untold stress.”

Stakeholder Response: Forum of Private Business

The Forum of Private Business (FPB), which represents 25,000 small to medium sized firms, made the following comments on today's Queen's Speech.

Company Law Reform Bill: The FPB's head of policy Alison Fletcher said: "For more than 10 years, the FPB has been petitioning the Government to adopt a 'think small first' approach to regulation, so it is terrific news that, finally, the message seems to be getting through.

"These proposals will be warmly welcomed by smaller firms as they will mean less red tape to deal with, lower costs and valuable time savings. The present system is fundamentally flawed and desperately requires change to take into account the practicalities of how smaller firms operate."

Education Bill: The FPB's chief executive Nick Goulding said: "It is critical that the new government focuses attention on skills and training for young people. Too many youngsters leaving both school and university today are arriving in the workplace without the skills, training or even limited experience and expertise to do a job competently. Therefore, the costs of training someone up are that much greater on small businesses. We sincerely hope this drive for better education focuses on literacy, numeracy and vocational training in skills directly relevant to business."

Parental rights Bill: Nick Goulding said: "Extending maternity leave to nine months then 12 months by the end of the parliament will have an extremely negative impact on small firms particularly micro business. Losing a key worker for a long period, who fundamentally understands what makes the firm tick, can seriously undermine a business. Moreover there are also additional costs of employing a replacement in the form of agency fees. 

"The government must fulfil its pledge to allow employers to ask female employees when they intend to return to work. That will help bosses plan for the future and end the terrible uncertainty of the present system.

"Moreover allowing employees to transfer their maternity leave to their partner must not result in more red tape for businesses. This must be administered by the government."

Regulatory Reform Bill: The FPB's head of research Andy Mowlah said: "Small businesses have heard lofty promises to slash red tape before but there has never been the final clinching delivery. The promises have been moonshine. Government Departments have ignored red tape pledges and failed to conduct small business impact assessments before imposing legislation. 

"The malignant spread of red tape and regulation must be addressed as a matter of the utmost urgency. For example the FPB would ask that the DTI's promise to slash more than £1bn of red tape over five years is held to account. We need clear criteria so we can assess what, where, when and how it is going to achieve this aim." 

Violent Crime Reduction Bill: Andy Mowlah said: "Cracking down on anti-social behaviour is vital for small businesses particularly those operating in town centres which are increasingly blighted by drink related thuggery. It is also important in deprived areas where businesses are suffering because shoppers are being driven away by the threat and fear of crime."

Corporate Manslaughter Bill: Andy Mowlah said: "At last a level playing field is being created. Small business bosses have been responsible for corporate manslaughter since day one and it is absolutely right big business should be held responsible too."

Stakeholder Response: IoD

Business leaders said today they were pleased there were no surprises in the government's new legislative programme. However, the Institute of Directors (IoD) said that it hoped the good intentions set out in the Queen's Speech, would be matched by action.

The Speech contained a number of Bills that will benefit businesses and improve the infrastructure on which business relies, the IoD said.

Of particular advantage to business will be the Regulatory Reduction Bill, the IoD said. The government's commitment to continue with a Corporate Manslaughter Bill was also praised.

Miles Templeman, director general of the Institute of Directors, said: "We are very pleased the government has listened to the concerns of hard pressed businesses and is finally tackling the menace of red tape. The commitment to introduce targets to reduce regulations across Government Departments is a very welcome move."

Other Bills and measures welcomed by the IoD include:

Company Law Reform: "Modernisation of company law is long overdue.  Much time and effort has gone into getting to this stage and it is hoped that a sound and comprehensible legal framework that will encourage responsible enterprise will result."

Pensions Reform: The IoD said it looked forward to seeing some concrete proposals from government, sooner rather than later.

Parental Rights: The IoD is not opposed to increasing paid maternity leave from six months to nine months. However, the government should pay employees directly rather than drain employers' cash flow.

Incapacity Benefit Reform: With almost three million people of working age claiming some form of incapacity benefit, there is a great loss to the economy, to individuals and the nation.