The coalition still lacks a compelling vision for growth

Vince Cable's Enterprise Bill is incoherent and insufficient.

Britain and its businesses are crying out for a government that values enterprise and can spur jobs and growth.  We are in the longest double dip recession since the Second World War. Even if the one-off boost from the Olympics finally brings us out recession, and growth was one per cent in the third quarter, as some are predicting, our economy will simply be the same size as a year ago. We desperately need a government firing on all cylinders to help businesses drive the recovery.

In this context, the Enterprise and Regulatory Reform Bill, which returns to the House of Commons this week, could have been a great opportunity to put in place the measures necessary for business to plan ahead with long-term certainty. 

While there are elements in the Bill with which we agree - we support the creation of a Green Investment Bank, which was set in motion under Labour in government, and want to see improvements to the competition regime - like many business groups, we don’t believe it meets the challenges facing our economy.

It will not provide the crucial boost to demand to get us out of recession and into recovery, but it is also a rag tag of a Bill: incoherent, insufficient and sadly reflective of Vince Cable’s own concerns, articulated in his letter to the Prime Minister earlier this year, that the government lacks a compelling vision for the economy.  If you want to find a compelling vision from the government, the Business Secretary's Enterprise and Regulatory Reform Bill is not the place to look.

Take copyright as an example. Britain leads the world in creative and cultural industries.  One of the reasons for this is the strong, robust and clearly-understood legal framework that this country has in place.  But the Bill threatened to undermine this with an unnecessary and unnerving measure which had not been worked through with the sector and which risked undermining growth and investment opportunities, giving the Secretary of State wide-ranging and far-reaching powers to amend, remove or introduce exceptions to copyright without appropriate or adequate Parliamentary scrutiny.  Thankfully, last week, finally, the government saw sense and heeded the concerns we and the creative industries sector had raised, and has performed a welcome U-turn on these proposals.

However, it should use this opportunity to follow this up with U-turns on a whole host of other unwelcome measures within the Bill. Employment rights are a particular concern: ministers seem to believe that protections for people at work are the reason we are in recession, while in reality we already have the third most liberalised labour market in the developed world. According to a recent survey by BIS itself, only five per cent of small firms cited regulation as the main barrier to success, while 37% identified the economy as their primary obstacle.

The government has brought forward no evidence that making it easier to sack people produces economic growth. Indeed, when Adrian Beecroft, author of the No 10-commissioned report on employment law reform, came before MPs to give evidence, he admitted that his views “were based on conversations with a sample of people, which is not statistically valid”. Ever had a conversation with a bloke down the pub? Well that’s how government policy on employees’ rights is being devised.

Ministers’ stance on equality legislation is equally concerning. Quite what measures to water down the Equality and Human Rights Commission have to do with an Enterprise Bill needs questioning. This would seem to be further confirmation, if this were needed, of the return of the nasty party, aided and abetted by the Lib Dems.

It is disingenuous of Cable to suggest that these changes are merely “legislative tidying up”. The Liberal Democrat founder of the BAME Councillors Association, Cllr Lester Holloway, wrote in the Guardian in August that he was “deeply ashamed” at what Vince Cable was doing to the Commission, while Issan Ghazni, Chair of Ethnic Minority Liberal Democrats, has warned Lib Dem ministers that the changes in the Bill “amount to effectively abolishing the EHRC by stealth, which could potentially reverse progress made on equalities over the past decades.”   

The measures in the Bill, together with new amendments tabled last week by the government which weaken protections against third party harassment of employees, in direct contradiction to what Cable said to my Labour colleague Kate Green at the Second Reading of the Bill, will make life even harder for thousands of staff who run the risk of prejudice, abuse and harassment whilst doing their work.

We all want to see the economy grow and businesses thrive. As Chuka Umunna said in a letter to Cable last month, we would be keen to work with the government on a cross party basis to address the issues that matter to firms, to boost recovery and pull this country out of recession. But the rag bag of measures in the Enterprise and Regulatory Reform Bill fails to meet this challenge and, rather than helping business, makes the job of recovering from the recession made in Downing Street that bit more difficult.

The coalition has failed to answer Business Secretary Vince Cable's call for a "compelling vision" for the economy. Photograph: Getty Images.

Iain Wright is the shadow minister for competitiveness and enterprise.

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Donald Trump vs Barack Obama: How the inauguration speeches compared

We compared the two presidents on trade, foreign affairs and climate change – so you (really, really) don't have to.

After watching Donald Trump's inaugural address, what better way to get rid of the last few dregs of hope than by comparing what he said with Barack Obama's address from 2009? 

Both thanked the previous President, with Trump calling the Obamas "magnificent", and pledged to reform Washington, but the comparison ended there. 

Here is what each of them said: 

On American jobs

Obama:

The state of our economy calls for action, bold and swift.  And we will act, not only to create new jobs, but to lay a new foundation for growth.  We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together.  We'll restore science to its rightful place, and wield technology's wonders to raise health care's quality and lower its cost.  We will harness the sun and the winds and the soil to fuel our cars and run our factories.  And we will transform our schools and colleges and universities to meet the demands of a new age.

Trump:

For many decades we've enriched foreign industry at the expense of American industry, subsidized the armies of other countries while allowing for the very sad depletion of our military.

One by one, the factories shuttered and left our shores with not even a thought about the millions and millions of American workers that were left behind.

Obama had a plan for growth. Trump just blames the rest of the world...

On global warming

Obama:

With old friends and former foes, we'll work tirelessly to lessen the nuclear threat, and roll back the specter of a warming planet.

Trump:

On the Middle East:

Obama:

To the Muslim world, we seek a new way forward, based on mutual interest and mutual respect. To those leaders around the globe who seek to sow conflict, or blame their society's ills on the West, know that your people will judge you on what you can build, not what you destroy. 

Trump:

We will re-enforce old alliances and form new ones and unite the civilized world against radical Islamic terrorism, which we will eradicate completely from the face of the earth.

On “greatness”

Obama:

In reaffirming the greatness of our nation we understand that greatness is never a given. It must be earned.

Trump:

America will start winning again, winning like never before.

 

On trade

Obama:

This is the journey we continue today.  We remain the most prosperous, powerful nation on Earth.  Our workers are no less productive than when this crisis began.  Our minds are no less inventive, our goods and services no less needed than they were last week, or last month, or last year.  Our capacity remains undiminished.  

Trump:

We must protect our borders from the ravages of other countries making our product, stealing our companies and destroying our jobs.

Protection will lead to great prosperity and strength. I will fight for you with every breath in my body, and I will never ever let you down.

Stephanie Boland is digital assistant at the New Statesman. She tweets at @stephanieboland