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Law, law, law - how do you like it?

Posted by Ross Smith on August 6, 2008 3:01 PM | 

We sent off today the North East Chamber of Commerce's response to Gordon Brown's Draft Legislative Programme for 2008-9 - in other words, the new laws he intends Parliament to work on over the next year.

There's some pretty important stuff in there for North East businesses - not the least the prospect of councils being given new powers to put an extra levy on business rates.

We've told Government that we're not against the idea in principle - if businesses in the region agree it's worth spending extra money to fund a particular piece of infrastructure, then this creates a means for them to do so. In practice, however, we've raised some serious concerns over how it might be applied.

Firstly, it should only be done when there is absolute clarity that businesses of all sizes and sectors back it. Ideally, this would be through a vote. If Government thinks a different method of consultation could work instead, it will have to be very clear how it can make sure this is robust.

Secondly, if businesses are going to pay more, it must be for a project that will give them substantial benefits - not something which will be generally useful, for which firms can be treated as merely a cash cow.

Thirdly, as this is a local tax, it must be for particularly local projects - not to prop up shortfalls in central Government funding for nationally important infrastructure.

Lastly, it should have clear time limits - the businesses of today should not be asked to decide what companies based in the North East will have to pay in 25 years' time.

Other key issues which MPs will be deciding on over the next year include a new system for skills training, and how regional economic policy will be re-shaped, under the Sub-National Review. NECC is determined that on all these issues, North East business interests must be championed. We'll be keeping in touch with MPs to make sure that when the details of these laws are being worked out, they know what our members' needs and aspirations are, and just how important it is that they're recognised.

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