The group chair and chief executive of private sector lobby group Downtown in Business, Frank McKenna, is urging the government to review its planned fiscal and legislative changes, claiming that they will negatively impact on companies across the country and result in unintended consequences.
Mr McKenna, a long time Labour Party member and supporter said:
“Labour in opposition did a lot to engage with business to get industry on-side and behind its economic growth mission.
“I felt as though shadow ministers were genuinely listening to the concerns of entrepreneurs and business owners, and there was a huge amount of goodwill from company owners for Labour when it won the General Election back in July.
“However, I get the impression that since taking office, some in government have stopped listening to business – particularly to SME’s who are the lifeblood of the UK economy.
“Some ministers seem to have forgotten that in order to re-distribute wealth, you have to create it – and some of the planned changes that are on the horizon has led to a good number of DIB member companies freezing recruitment, downsizing, and rowing back on growth plans in the immediate future.”
Mr McKenna said that there are key issues that the chancellor Rachael Reeves and the Business Secretary Jonny Reynolds should review urgently.
“On the National Insurance increases announced, the chancellor should accept the House of Lords amendment and exempt care providers, small business, and charities from the changes. I’d add part time workers to that list. She should also look at transitioning the lowering of NI thresholds over three years for companies with a turnover of less than £10m.
“On the planned employment rights bill, the government does appear to be taking some account of business views, walking away from the proposed ‘right to switch off’ rule. Nevertheless, I am still concerned about changes to probationary periods, and suggestions that workers will have the right to work from home.
“Businesses are not daft. The vast majority have introduced flexibility into the workplace, and there has never been as much emphasis in creating great workplace cultures from employers. We do that in the full knowledge that it is a competitive market for talent, and business wants to keep good staff.”
Mr McKenna concluded
“I am afraid that some of the government’s proposals will result in redundancies, less opportunities for younger people, less flexible working, an even greater backlog of employment tribunals, and, sadly, some business closures too. That does not contribute to economic growth.
“It is not too late to review some of the policies announced. I hope the government returns to listening-mode, and reviews some of its planned reforms.”
