Government shows poverty of ambition in Queen's Speech, says IoD

8 May 2013

Commenting on the Queen’s Speech, Simon Walker, Director General of the Institute of Directors, said:

“The Government has lost its last chance to introduce legislation to unleash business before the next election. The National Insurance cut announced at the Budget will reduce the cost of employing staff for small businesses and the flat-rate state pension will benefit modest earners, but the Deregulation Bill is a missed opportunity. It does little to cut back red tape for employers and nothing to tackle the problem of ‘gold-plated’ EU regulation.”

Before the Queen’s Speech, the IoD called for much more extensive deregulation to boost business and the economy. 

On individual areas of the Queen’s speech

National Insurance:  

The Chancellor announced at the Budget that from 2014 employers would not have to pay the first £2,000 of employers’ National Insurance contributions. In a recent survey of IoD members, over 70% said the move was positive for their business, with a third saying it would encourage them to hire new staff. The Policy Voice poll of 1,135 IoD members ran from Monday 26th March until Friday 5th April 2013.

The flat-rate state pension:

The IoD has long argued for a flat-rate state pension to reduce complexity in the system and give modest earners the incentive to save for their retirement. However, it seems that the Government may intend to provide a lower state pension for workers who contracted out of the state second pension. While it is true that these people paid lower National Insurance contributions, they also took their pension liabilities off the Government balance sheet and bore the investment risk themselves.

HS2:

Decisions on the biggest rail investment ever in the UK must be coordinated with decisions on airport capacity, not taken separately. If Heathrow is to remain the UK’s main hub airport, HS2 must run directly through it. High speed rail will rightly connect Birmingham and Manchester airports - it should run through our biggest airport as well.  

ENDS

Contacts for further comments or to arrange interviews:

Edwin Morgan
Media Relations Manager
Institute of Directors, 116 Pall Mall, London SW1Y 5ED
+44 (0)20 7451 3392
+44 (0)7814 386 243
Edwin.morgan@iod.com

Notes to editors

  • The Institute of Directors (IoD) was founded in 1903 and obtained a Royal Charter in 1906. The IoD is a non-party political organisation with approximately 35,000 members in the United Kingdom and overseas. Membership includes directors from right across the business spectrum – from media to manufacturing, e-business to the public and voluntary sectors. Members include CEOs of large corporations as well as entrepreneurial directors of start-up companies.
  • The IoD provides an effective voice to represent the interests of its members to key opinion-formers at the highest levels. These include Government ministers and their shadows, parliamentary committee members, senior civil servants and think-tanks. IoD policies and views are actively promoted to the national, regional and trade media. Follow us on Twitter to get the IoD’s reaction on business and public policy issues.
  • The IoD offers a wide range of business services which include business centre facilities, with ten UK centres (three in London, one each in Reading, Birmingham, Cardiff, Manchester, Nottingham, Norwich, Edinburgh, Glasgow and Belfast) and one in Paris, conferences, networking events, virtual offices, issues-led guides and literature, as well as free access to business information and advisory services. The IoD places great emphasis on director development and has established a certified qualification for directors – Chartered Director – as well as running specific board and director-level training and individual career mentoring programmes.



Press Office
116 Pall Mall
London
SW1Y 5ED