SMEs concerned over workers' rights reform and NI hike |
The Employment Rights Bill could significantly impact small businesses, according to HR consultants. The Bill aims to enhance workers' rights, including extending unfair dismissal rights and tightening zero-hours contract regulations. Government analysis estimates the measures could add £5bn to employer costs, with additional amendments potentially increasing expenses by £80m annually. Phil Coxon, CEO of Breathe HR, said: "British businesses face a perfect storm," highlighting that the Bill "brings administrative, legal, and financial changes which will be challenging to implement." The British Retail Consortium has warned that over half of retailers may cut staff in response to the Bill. Meanwhile, Rachel Reeves faces mounting criticism as small business job vacancies fell 18% following her national insurance hike. The Federation of Small Business claims members “don’t feel the government has their backs,” while Lib Dems urge scrapping the “jobs tax.” ONS data shows 46,000 fewer vacancies at small firms since the 2024 Autumn Budget, part of a £25bn revenue plan for public spending. Critics argue the tax contradicts Reeves' growth goals. |
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