The coalition is still failing business

The government's enterprise bill provides no evidence of a clear strategic direction.

Today the Enterprise and Regulatory Reform Bill receives its second reading in the House of Commons.  It was trailed in the days before the Queen’s Speech as the centrepiece of a legislative programme by the government built on “growth, justice and constitutional reform”.  In reality, it is anything but.

The bill is a good illustration of the weaknesses and divisions at the heart of the government. The most pressing issue facing Britain is the fact that the economy has gone into reverse. The Prime Minister and Chancellor may wish to hide behind the fact that there is a eurozone crisis, or that we had too many days off because of the Queen’s diamond jubilee, or that the weather is slightly too cold or too hot, or – at the moment – too much rain. But everyone else seems to realise, with the exception of the occupants of 10 and 11 Downing Street, that their insistence on cutting spending and raising taxes too far and too fast, and thereby choking off demand in the domestic economy, has plunged this country back into a recession made in Downing Street. What we need is a proper plan for jobs and growth to get the economy going again – like Labour’s five-point plan.

Only in the last few days, President Obama has implicitly criticised the government’s stance, noting that it is a lot harder to rein in deficits and debt if your economy is not growing.  Tellingly, he singled out Angela Merkel and François Hollande for “working to put in place a growth agenda alongside responsible fiscal plans”. No such praise for David Cameron or George Osborne.

There is no magic piece of legislation that would conjure up growth. But the case for a British Investment Bank needs to be examined, as Labour is doing.  Reforms to allow firms to better plan for the long-term, invest in new plant and skills and ensuring that there are more, better paid jobs so the economy works for more people, more of the time would also improve Britain’s competitiveness and allow us to get back into growth much more quickly.

In the longer-term, the bill provides no evidence of a clear strategic direction.  Business is crying out for a stable policy environment to allow them to invest and plan for the long-term; a proper industrial strategy, based on the long-term to encourage sustainable growth, but this bill has failed to provide this.

We have in the bill the establishment of the Green Investment Bank, a welcome initiative that Labour announced back in 2010, but it won’t have powers to lever in private money to boost green investment until 2016. 

There are reforms designed to make executive pay more accountable and transparent, but ministers are refusing to implement all of the sensible recommendations from the High Pay Commission such as putting an employee representative on remuneration committees – and now it appears that Vince Cable is seeking to water down provisions for annual shareholder votes on executive pay.

The bill includes reforms to employment legislation. There are some changes on tribunals which are worth exploring but, in a nod and a wink to the Tory right, the government is hinting that it could bring forward amendments during the bill’s passage to put Beecroft’s fire at will manifesto on the statute book, alongside other proposals within the bill to water down the rights we enjoy at work.

Cable lamented in his leaked letter to the Prime Minister that the government has lacked a compelling vision on where it wants to take the country’s economy by 2020.  With this bill had an opportunity to rectify this and provide the strategic vision which British business is crying out for, leaving a lasting legacy that would boost economic recovery and secure Britain’s competitiveness in the next decade. Faced with the roadblocks to reform in Downing Street, it is a great shame this opportunity has been missed.

The Chancellor continues to "hide behind the fact that there is a eurozone crisis". Photograph: Getty Images.

Iain Wright is the shadow minister for competitiveness and enterprise.

@Simon_Cullen via Twitter
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All 27 things wrong with today’s Daily Mail front cover

Where do I even start?

Hello. Have you seen today’s Daily Mail cover? It is wrong. Very wrong. So wrong that if you have seen today’s Daily Mail cover, you no doubt immediately turned to the person nearest to you to ask: “Have you seen today’s Daily Mail cover? It is wrong.”

But just how wrong is the wrong Mail cover? Let me count the ways.

  1. Why does it say “web” and not “the web”?
  2. Perhaps they were looking on a spider’s web and to be honest that makes more sense because
  3. How does it take TWO MINUTES to use a search engine to find out that cars can kill people?
  4. Are the Mail team like your Year 8 Geography teacher, stuck in an infinite loop of typing G o o g l e . c o m into the Google search bar, the search bar that they could’ve just used to search for the thing they want?
  5. And then when they finally typed G o o g l e . c o m, did they laboriously fill in their search term and drag the cursor to click “Search” instead of just pressing Enter?
  6. The Daily Mail just won Newspaper of the Year at the Press Awards
  7. Are the Daily Mail – Newspaper of the Year – saying that Google should be banned?
  8. If so, do they think we should ban libraries, primary education, and the written word?
  9. Sadly, we know the answer to this
  10. Google – the greatest source of information in the history of human civilisation – is not a friend to terrorists; it is a friend to teachers, doctors, students, journalists, and teenage girls who aren’t quite sure how to put a tampon in for the first time
  11. Upon first look, this cover seemed so obviously, very clearly fake
  12. Yet it’s not fake
  13. It’s real
  14. More than Google, the Mail are aiding terrorists by pointing out how to find “manuals” online
  15. While subsets of Google (most notably AdSense) can be legitimately criticised for profiting from terrorism, the Mail is specifically going at Google dot com
  16. Again, do they want to ban Google dot com?
  17. Do they want to ban cars?
  18. Do they want to ban search results about cars?
  19. Because if so, where will that one guy from primary school get his latest profile picture from?
  20. Are they suggesting we use Bing?
  21. Why are they, once again, focusing on the perpetrator instead of the victims?
  22. The Mail is 65p
  23. It is hard to believe that there is a single person alive, Mail reader or not, that can agree with this headline
  24. Three people wrote this article
  25. Three people took two minutes to find out cars can drive into people
  26. Trees had to die for this to be printed
  27. It is the front cover of the Mail

Amelia Tait is a technology and digital culture writer at the New Statesman.