Coalition split over report into slashing regulations
BUSINESS minister Mark Prisk was forced to defend the hard-hitting Beecroft report yesterday, after its proposals to slash red tape were attacked by both Labour and the coalition’s own business secretary Vince Cable.
A leak of the government-commissioned report prompted the Department for Business, Innovation and Skills (BIS) to publish it earlier than planned, revealing a range of suggestions to liberalise the UK’s employment regulations.
Prisk was brought to the House of Commons after an urgent question was secured by Labour’s shadow business secretary Chuka Umunna, who then accused the coalition of being divided on the issue.
“The business secretary [Vince Cable] has said there is a reasonably good balance between workers’ rights and employers’ flexibility. The Prime Minister and chancellor however suggest the balance has gone too far in favour of employees,” Umunna told the House.
“Would the minister tell us who is determining government policy in this area – his boss or his ultimate masters in Downing Street?”
Prisk hit back, saying the coalition “needs fresh ideas” to revive the economy and arguing: “it’s a shame we don’t get them from the party opposite.” Yet his coalition partner Cable opposes moves to allow firms to fire badly-performing staff. “In my daily conversations with businesses, this has very rarely been raised with me as a barrier to growth,” Cable said, having earlier slammed the idea as “complete nonsense”.
Yet Cable also said the “vast majority” of proposals reflect his department’s plans. The report recommends:
• Compensated no-fault dismissal to replace current unfair dismissal rules.
• Extend qualifying period for unfair dismissal to two years, from one.
• Allow firms with fewer than 10 employees to opt out of much red tape.
• Charge a fee to employees applying for a tribunal to deter frivolous cases.
• Exclude firms with under five workers from being subject to the auto-enrolment pension scheme.
• The Home Office should take more responsibility for work permit checks.
• Make it simpler to bring workers from abroad, and drop the demand to register each role at a Job Centre Plus.
• A consultation period of 30 days for redundancies of more than 100 people.