David Cameron was facing growing criticism from business leaders who claimed that the Queen’s Speech contained too few measures that would boost the economy.
Just a day after he and Nick Clegg declared that economic growth was the Coalition’s first priority, the Prime Minister said that “tough, long-term” policies had been unveiled to “return our country to strength”.
Mr Cameron lauded proposed laws to overhaul the pension system, toughen criminal justice procedures and offer more flexible parental leave for young families.
However, business groups said that only one of the 19 pieces of legislation announced yesterday — an overhaul of employment tribunals — would directly help boost enterprise and the beleaguered economy.
Concerns were also expressed that offering parents more flexible leave and reforming the energy market may ultimately prove costly for business.
Business leaders pointed out that Mr Cameron had failed to table plans to expand airport capacity or reform the water network, both of which are a threat to international competitiveness.
After last week’s poor results for the Tories in local elections, Mr Cameron said he would shift his focus to the economy.
The Prime Minister has faced criticism from his own backbenchers for allowing the Coalition to become distracted by issues of limited interest to the majority of voters, such as reform of the House of Lords.
Simon Walker, the director-general of the Institute of Directors, said: “To restore business confidence, which is the real key to growth, there must be drastic measures to cut costly regulation and continue to tackle the deficit.”
John Longworth, the director-general of the British Chambers of Commerce, said: “Business has said time and time again that the Government must choose between boosting the economy or playing short-term politics. Business people and voters understand that the economy must come first.”
John Cridland, the director-general of the CBI, added: “The test for this Queen’s Speech is whether it will help businesses to grow. Two Bills stand out for me: energy and regulatory reform. The first should help, but the jury’s out on the second.”
Sir Stuart Rose, the former M&S boss, said: “We need to get some growth into the economy, which is flatlining. It’s about putting in place initiatives and the right policies for business to invest.”
Labour leader Ed Miliband joined the criticism. He said: “This is the speech that was supposed to be the Government’s answer to the clear message from the electorate last week. But on today’s evidence, they still don’t get it.”
The Prime Minister defended the Government’s record and said that the Coalition had introduced a series of radical reforms in welfare, education and other areas over the past two years. Senior Tory sources said that the Budget in March had helped business by cutting corporation tax and reducing the top rate of income tax.
The first Bill outlined in the Queen’s Speech was legislation to overhaul employment regulation. Critics pointed out that the legislative programme would also lead to the creation of several new quangos, undermining previous efforts to cut the number of such bodies.
Other Bills announced yesterday included plans to reform banks and the energy system; a children and families Bill; proposals to allow secret evidence to be considered by courts and for the intelligence agencies to keep track of internet-based communication.
There were also laws designed to to protect academic researchers from costly lawsuits, and reforms to the state and public sector pension systems.
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