New Government, New Rules
In this insightful episode, Andy and Alice are joined by MHR legislation expert James as the team discusses the key questions, concerns, and challenges businesses are expressing following last week's general election.
We look at the main questions we expect businesses will have following a new government. We also reflect on the promises made by election manifestos and make predictions on when businesses can expect more detail on key changes that will affect their world of work.
Tax
The new government have said there will be no tax increases for "working people", and promised not to increase national insurance, income tax or VAT. They have also said corporation tax will be maintained at 25%.
It is still up in the air where any increases in tax receipts will come from, but the headliner most people will have heard about is charging VAT on private school fees and tax on non-doms.
We will probably need to wait until the first budget from Chancellor of the Exchequer Rachel Reeves for much more certainty about their plans.
Employment law
Labour is proposing quite a lot of employment law changes to improve the rights of workers:
Extra protection from unfair dismissal from day one of employment
Restrict zero-hours contracts
Tighten up laws on "fire and rehire"
End the distinction between employees and workers, which would extend employment rights
Roll-back laws limiting industrial action
Introduce the "right to disconnect"
Remove the lower earnings limit and waiting days from statutory sick pay
Remove age-related banding for the national minimum wage
Reporting on ethnicity and disability pay gaps
For now, we don't know which of these will go ahead or what form they will take. Most of the proposals would need new or secondary legislation, which won't happen overnight, and concerns have been raised over the cost to businesses.