Manufacturers ‘dismayed’ by Queen’s speech

Commenting on the business-related measures in the speech which traditionally outlines the shape of forthcoming legislation, Steve Radley, chief economist at the manufacturers’ organisation EEF, said: “In the current climate business will be dismayed that a number of the proposals threaten to add to business costs and burdens at a time when companies can least afford them.” On the idea of supplementary business rates, he said manufacturers would not be opposed to the idea in principle in that local councils should be able to raise funding to pay for infrastructure projects which would benefit companies. “However, any decision to raise rates has to be done with the full co-operation of business and not taken unilaterally,” he added. On the banking system, Radley believed the government had only gone part way towards “unblocking the arteries of the financial system”. With the increased cost of and, tighter conditions attached to, lending probably being the single biggest issue that companies were currently facing, there was an urgent need to put in place a new banking system that was fit for purpose. On flexible working, EEF’s head of employment policy David Yeandle (pictured) said that at a time when companies were facing major issues arising out of the flexible working legislation that already existed, the new decision to extend it further next year sent a bad signal to business. “Manufacturers support the principle of flexible working but must be given more time to adjust to the regulations and manage demands that already exist,” he concluded.