Labour have unveiled their first legislative program since winning the General Election.
His Majesty The King outlined details of 40 bills that outline various big and small changes that will impact directors and business owners which we look at here.
- Budget Responsibility Bill – All government fiscal measures must come with an independent assessment by the Office for Budget Responsibility
- Draft audit reform and corporate governance bill – a technical piece of legislation setting out a revamped regulator for the accounting auditing sector
- Pension schemes bill – A broad pensions based bill covering measures intended to help employees get more from their retirement pots
- Employment rights bill – earmarked as one of the bills that will be introduced during the first 100 days of the new government. This includes measures such as banning zero-hours contract along with “fire and rehire” practices; will add extra rights on flexible working and make parental leave, sick pay and protection from unfair dismissal immediate rights for new employees
- Skills England bill – an attempt to bring together employers, unions and others to boost skills training
- Draft equality (race and disability) bill – This would set out equal pay rights for people from minority ethnic groups and disabled people, including mandatory ethnicity and disability pay reporting for some employers
- Arbitration bill – a bill that aims to modernise and hasten dispute resolution systems
- Product safety and metrology bill – a specific bill intended to increase economic efficiency and growth with the focus on measurement
- Digital information and Smart data bill – legislation aimed at changing data-sharing standards and introducing a proper system for digital verification services
The Employment Rights bill is one of the most eye-catching and important for employers to understand with major changes to legislation.
Firstly zero-hour contracts will be outlawed with all workers required to receive a contract that reflects the number of hours they regularly work. They will also be entitled to “reasonable notice” of any changes in shift with proportionate compensation for any shifts that are curtailed or cancelled.
“Fire and rehire” and “fire and replace” practices will also be abolished which will be done by “reforming the law to provide effective remedies and replacing the previous Government’s statutory code.”
While new employees will now enjoy access to parental leave, sick pay and protection from unfair dismissal, employers will still be able to operate probationary periods while they assess new hires.
The lower earnings limit on Statutory Sick Pay will also be removed with the three-day waiting period set to be scrapped.
The bill also introduces stronger protections for new mothers by making it unlawful to dismiss a woman who has had a baby for six months after her return to work and simplifies the process of statutory recognition.
Additionally the government plans to introduce a “genuine living wage” that “will account for the cost of living” and remove “discriminatory” age bands.
“Positive to see”
Kate Nicholls, Chief Executive of UKHospitality, said: “The next session of Parliament will be essential in kickstarting the growth needed to achieve the Government’s objectives.
“It’s positive to see significant measures announced today that can help hospitality achieve its growth potential of 6% a year. With bills addressing Apprenticeship Levy reform and improvement of the planning system, I’m pleased that key asks of UKHospitality are being delivered on and that our concerns have been heard loud and clear by the new Government.
There was no mention of business rates reform in the speech despite a manifesto commitment to replace the current system in England to level the playing field between high street businesses and online giants.
Nicholls continued: “With no mention of business rates in today’s King’s Speech, the autumn fiscal statement is now all the more important to drive the Government’s plan for national renewal and to show clear progress on delivering its manifesto commitment to fix the broken business rates system.
“Particularly as businesses are facing an end to 75% rate relief next April if action isn’t taken.”
Tina McKenzie, Policy Chair of the Federation of Small Businesses (FSB) felt that the announcements “fell short of the central challenge – getting growth back into the economy and ensuring wealth creation in every local community.”
She said: “The briefing document doesn’t mention “small business” once and apart from some ambitious-sounding reform, there was no sign of delivery of the small business plan promised in opposition.
“The lack of promised legislation to tackle late payments and poor payment practices by bigger businesses to small suppliers is the most serious omission for our community. This hampers cash flow and stifles investment and we call on them to look again.”
Shevaun Haviland, Director General of the British Chambers of Commerce, said: “The commitment to an industrial strategy could put in place a framework to unleash the pent-up ambition of British business to grow the economy. If we use it to make green innovation a key driver of that growth and link it to a coherent plan around skills, trade, devolution and AI then the possibilities could be endless.
“There is much in the speech which shows that the voice of business has been heard and that the Government is introducing measures that benefit firms and help unlock investment. We want to work in partnership with the government to make this happen and shift the economy out of first gear to get it motoring again.”
There will be many changes in the weeks, months and years ahead for business owners and directors to navigate.
This is why it’s more important than ever to have a strategic direction and plan to follow through – especially if the financial situation is tough right now.
This is why we offer a free initial consultation to anyone who wants to map out, in detail, their immediate options.
Whether they are planning to restructure then grow their business or if they are looking for the most efficient and effective exit strategy to allow them to begin a new venture afresh and debt free – we will be able to give them a new perspective.