The new plans will see fathers being given far more time off than before. Currently, new fathers are given just two weeks paid leave, whilst new mothers can have up to 12 months leave, nine of those being paid.
Under the new changes, fathers will automatically be given four extra weeks of paid paternity leave - a month and a half in total – whilst new mothers will automatically receive five months paid leave.
The major change, which may be a reflection on our modern society, will see fathers being able to use some of the mother’s entitled leave as they will be able to divide another seven months of leave between them, with four months being paid.
If both the mother and father want parental leave at the same time to look after a newborn, they will also have the choice of taking six months leave together, most of which would be paid.
Officials said that employers would not be able to refuse requests for the time off. And as long as the employer agrees, the Government is proposing plans that will see fathers being able to take their parental leave at any time during their child’s first year.
The new plans are part of a “modern workplaces” consultation, which is being launched today.
The Government will hope that these plans will be welcomed by employers. However, business groups are already hailing the warning signs, believing the changes will add further employment legislation during a time when the Government is currently trying to reduce the burden of red tape.
David Frost, director-general of the British Chambers of Commerce, said: “Any changes by the Government to parental leave will further complicate the system and fly in the face of its commitment to reduce the burden of employment legislation on business.”
A spokesman for the Federation of Small Businesses added: “They are making something that is already quite complicated more complicated. It might actually prevent small businesses taking someone on.”
For more information, please visit www.milsted-langdon.co.uk
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The latest clampdown on tax evaders by the HMRC is of course welcome, however, reports of how they are ‘clamping down’ on businesses have raised a few eye brows.
Today, tax inspectors have begun an all mighty rampage in London, where their target are restaurants, they will then move onto restaurants in Scotland, followed by the North West.
The HMRC has a goal of collecting an additional £7 billion in tax a year from businesses and individuals by 2014.
Any clampdown on tax evasion is welcome - tax evaders can gain an unfair business advantage, allowing them to undercut and even drive out of business those who pay their taxes in full.
However, it is the way in which tax inspectors are orchestrating the clampdowns that is a huge cause for concern for all money-based businesses, such as hairdressers, bars, hotels and restaurants.
A restaurant in Bristol reported how a coach load of 20 tax inspectors arrived unexpectedly, carried out there inspection and closed the restaurant down there and then.
Tax must be paid but the country also needs jobs and growth, especially at this time of economic downfall. Raids and investigations that are handled poorly can lead to otherwise viable businesses closing down.
The HMRC were given £900 million in last year’s spending review, and it is hoped that this will provide them with the extra resources they need.
For more information, please visit www.milsted-langdon.co.uk
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Mervyn King has cast a grey cloud over the future prospects of the UK interest rate. After two years of historic lows, the Bank of England Governor has sent out a warning to families that they should prepare for an even tighter squeeze on their finances, which has led experts to believe that an interest rate rise is imminent in order to halt the “volatile” inflation rate.
It is expected that higher borrowing costs will be a major problem for home owners who have been led to believe that monthly mortgage payments would stay low for many years ahead. A rise to the interest rate would also mean borrowers immediately being hit hard, whilst the rise would come as a relief to savers.
Until now, Mervyn King has consistently urged that an interest rate rise should be resisted as he believes an early rate rise could plunge the economy back into recession.
The Bank has predicted that the UK inflation rate could hit as high as five percent by the end of this year. The soaring inflation rate is thought to be the reason behind the Governors warning to households and businesses, as the balance of opinion to an early increase to the interest rate has been tilted.
Mervyn King said: “There is no doubt that we are facing a difficult time ahead with a slow and prolonged adjustment to the consequences of the banking and financial crisis. There is a good chance that, if utility prices rise further later in the year, inflation will reach 5 per cent before falling back through 2012 and into 2013.”
If inflation does reach five percent, it would mean being more than double the Governments target. Inflation is now being described as “volatile”, with the Bank of England’s quarterly inflation report notes saying: “There is a great deal of uncertainty about the outlook for inflation.”
For more information, please visit www.milsted-langdon.co.uk
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Sir Alan Sugar seems to find it easy to sack his potential employees, and for businesses it is also about to get a whole lot easier. The Government’s current war on red tape has meant that sacked workers who sue their employers for discrimination could have their compensation cut, making sackings within businesses easier and less costly.
In a bid to abolish unnecessary regulations, the Government launched the Help Us Cut Red Tape scheme, where businesses are able to voice their opinion to the Government on the regulations that are the most timely and costly for businesses.
Business groups told ministers that the rules on having to continue to pay workers for weeks after them being sacked places a burden on companies who are already trying to cut costs urgently, which has led to the sacking in the first place.
The Government’s on-going review of employment rules has also led ministers to be concerned that the prospect of large payouts for unfair dismissal on the grounds of discrimination is encouraging unfounded claims from workers.
The Liberal Democrat employment minister, Ed Davey, will today announce plans to ensure Britain has flexible labour markets, where employers can hire and fire staff more easily.
It is expected that the rules extending public sector terms and conditions to the private sector may also be overhauled. The limit on firms looking to sack large numbers of staff is also expected to be relaxed.
The on-going review on employment rules will also look at the Transfer of Undertakings (Protection of Employment) or Tupe rules, which administrate workers’ employment when one company takes on the work of a public sector body or takes over another company.
For more information, please visit www.milsted-langdon.co.uk
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The finger of blame is once again being pointed towards the banks, this time for house prices being at a 21 month low. In a survey released today by the Royal Institution of Chartered Surveyors, estate agents warn that the decline in the housing market is due to the banks refusing to lend to home buyers.
According to figures from Halifax, house prices fell at their fastest rate for 18 months during April. The average cost of a home fell to 1.4% during April to £160,395, which is the lowest level since July 2009.
Geoffrey Holden, a RICS member based in East Sussex, said: “There is a continuing shortage of mortgage funds. Lenders are extremely reluctant to provide funds, making purchases difficult.”
According to the survey, the future for house prices remains bleak with 18 per cent more estate agents expecting house prices to fall rather than rise in the next three months.
Michael Newey, a spokesman for RICS, said: “Activity still remains subdued and it is difficult to see it picking up materially over the coming months.”
The Halifax group believe the decline is due to the ever-weakening consumer confidence and the economic downfall putting downward pressure on house prices.
Halifax housing economist Martin Ellis saw the future for housing prices in a more positive light, saying: "Signs of a modest tightening in housing market conditions, a relatively low burden of servicing mortgage debt and an increase in the number of people in employment are all likely to be providing support for house prices, curbing the pace of decline."
The figured from Halifax contrasted with figures released by Nationwide for April, which revealed that house prices had dropped by just 0.2% and had remained more or less unchanged.
For more information, please visit www.milsted-langdon.co.uk
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