Business leaders attack transport tax plans
Business leaders in Yorkshire said yesterday that plans to force companies to pay an extra tax for new transport schemes were "unfair and unworkable".
There was mixed reaction to the 17 draft Bills the Government announced yesterday, with particular splits over proposals for flexible working and temporary workers' rights.
The Yorkshire and Humber Chambers of Commerce said it would be meeting with Local Government Minister and Wentworth MP John Healey next week to discuss the Government's latest plans for a supplementary business rate tax.
Ministers announced yesterday that the Business Rates Supplement Bill would be published in the next year, creating a new power for the highest tier local authority in an area to levy a local supplement on the business rate and to retain the proceeds for investment in the area.
Previously the Government has announced that any supplementary rate will be capped at 2p in the pound, will only be able to be raised for each year of the proposed project, and can only be levied for a third of the project's total cost unless a referendum of all businesses is held and won.
In Leeds City Council that would raise about £14m a year, which advocates say could go towards the proposed costs of a new trolleybus or tram system.
But last night the director of policy at the Yorkshire and Humber Chambers of Commerce, Nick Pontone, said: "We have concerns that this proposal is unworkable. In London £5bn has been raised for the Crossrail project but we would not be able to raise anything like that in Yorkshire.
"It would not be able to pay for any meaningful transport project nor would it deliver any project any quicker than without it.
"We also think there should be a referendum of businesses no matter what proportion of costs are being asked for, which would improve the quality of schemes that are accepted and would win a mandate from the business community that would be paying for them."
Other proposed legislation also drew criticism from the business community. Especially divisive were plans to force businesses to accept flexible working from parents of older children; give more rights to temporary workers; and allow workers to take time off for training.
The employment chairman of the Federation of Small Businesses, Alan Tyrrell, said: "The announcements on temporary agency workers and flexible working put small businesses in an impossible position.
"You can't have an extension of flexible working and at the same time clamp down on the means by which many small businesses cope with it, which is often through temporary workers."
The head of policy at the British Chambers of Commerce, Chris Hannant, said: "The UK labour market's flexibility has been one of the major reasons the economy has performed strongly and created so many jobs over the last decade.
"Proposals that undermine the advantages of this flexibility will not only damage employers, but will reduce job opportunities for those people that the proposals seek to protect."
But TUC general secretary Brendan Barber said: "A new right to request training is very welcome. Employers agree nine out of 10 requests for flexible working, and if they respond as positively on training it could help millions improve their skills and boost productivity.
"This will pose a real challenge to those employers who neglect training, and give unions an important role in helping individuals to shape their requests to learn new skills.
"The new commitment to increase apprenticeships is also extremely welcome, though employers will need to raise their game if it is to be fully realised."
Last night Yorkshire Minister and Doncaster Central MP Rosie Winterton said she wanted to hear from all interested parties in the region what they thought of the Government's proposals.
She said: "This is an important opportunity for people, organisations, business and groups across the public, private and voluntary sector to play a real part by getting involved with the consultation I have initiated in this region.
"Publishing our plans for new laws was breaking new ground when it happened last year and the involvement of citizens is a key strand. I want to see this region making sure that its views are voiced and heard."
The full article contains 716 words and appears in n/a newspaper.
-
Last Updated:
15 May 2008 10:17 AM
-
Source:
n/a
-
Location:
Yorkshire
-
Related Topics:
Brown's future plans