Proposed changes to business law outlined in the Queen's Speech were met by a mixed reception.

The Government's plan to introduce a regulatory reform bill to slash red tape was broadly welcomed - but with provisos.

Reaction was summed up by Jerry Blackett, policy director of Birmingham Chamber and Industry, who said: "This is good news for all businesses provided it leads to a real reduction in the amount of the unnecessary legislation that is dragging business down."

Over at the Black Country Chamber, chief executive Ian Brough also called for promises to be turned into action.

The small and mediumsized company sector, however, was downright sceptical about the prospects for less bureaucracy.

"Small businesses have heard lofty promises to slash red tape before but there has never been the final clinching delivery - the promises have been moonshine," said Andy Mowlah, head of research at the Federation of Private Business.

" Government departments have ignored red tape pledges and failed to conduct small business impact assessments before imposing legislation.

"The malignant spread of red tape and regulation must be addressed as a matter of the utmost urgency."

Kevin Hawkins, directorgeneral of the British Retail Consortium, said he welcomed prospect of cuts in red tape.

Plans for a company law reform bill aimed at promoting long-term investment, enhance shareholder involvement in companies and making it easier to set up and run a company were welcomed, although Birmingham Chamber's Jerry Blackett said he would like to see a two-year moratorium on new legislation.

"What matters is that we see urgent action on the issue to restore the competitive edge of British business.

"We are pleased to see that the company law bill, which will make it easier to set up and run a company, has survived from the last session. This will aid moves towards a more flexible and competitive economy," Mr Blackett said.

CBI deputy directorgeneral John Cridland said: "We welcome the Government's objective of making company law clearer and more accessible.

"We are also encouraged by the ministerial commitment to consider the impact of regulations on small companies at the outset.

"It is vital for the Government to achieve the right balance between removing unnecessary and burdensome obligations from smaller companies while keeping necessary protections for shareholders, employees and customers."

A proposal to extend maternity leave to up to 12 months was attacked by FSB chief executive Nick Goulding who said it would have an "extremely negative" impact on small firms, particularly on micro-businesses.

On plans for new corporate manslaughter legislation, Mr Cridland said any new bill wuld have to be fair and ensure that the "grossly negligent must be separated from genuinely responsible employers who do everything possible to ensure safety".

Hereford and Worcestershire Chamber of Commerce spokesman said: "This will get a lukewarm reaction from business at a time when the economic climate remains worrying.

"The UK economy is facing a number of serious threats. Our businesses need flexibility not more burdens. We need to promote enterprise and growth, not restrict our firms as they compete in the global market."