Tony Blair must prove early on his historic
third term that Labour is committed to supporting
small businesses, the backbone of the UK economy.
As Nick Goulding, Chief Executive of the
Forum of Private Business, which represents
25,000 small-to-medium sized firms said: “The
next five years are going to be extremely
tough for small businesses if Labour decides
to keep increasing national insurance contributions,
the minimum wage and fuel duty.
“Red tape and an extension to maternity
rights are also making it harder for business
to be flexible and respond to market and consumer
demand. If Labour believes in creating a business
environment, as it says it does, it must reduce
taxation and regulation.”
In parallel with this, the Government must
use its third term to improve skills training.
“The shortage of vocational skills relevant
to the workplace is of critical concern. Business
owners are telling us that too many young
people are arriving in the workplace from
school, college and university who cannot
spell or count to a competent level. Labour
is right to focus attention on improving skills,
but again the proof is in the pudding. Employers
will not be patient in waiting for Labour
to deliver more young people with vocation
skills,” he adds.
Similarly the British Chambers of Commerce
has voiced concern following Labour’s
victory. “This Government has a reputation
for being long on rhetoric and, in a fairly
benign economic climate, has got away with
it. In fact their confused agenda for business
support combined with their record on legislation
leads us to question whether they are as business-friendly
as they would like to claim.
“On a local basis, we are dismayed
at the lack of return Government is getting
from the amount of money it is spending. Crime,
transport, education and health have all been
beneficiaries of their largesse but the impact
this has had on the ground is negligible.
We will also be watching the performance of
the opposition parties, which, of late, has
fallen well short of what is needed. With
a reduced Government majority they will have
no excuse for being ineffective.”
SOURCE: BUSINESS INDEPENDENT
