The City backs Beecroft and not anti-business Cable – but also sees political risk in job reform
SCRAPPING unfair dismissal rules and making it easier to fire workers would be good for economic growth, according to our panel of readers.
However, they also recognised Adrian Beecroft’s controversial proposals would be politically unpopular and therefore difficult for the government to push through. The panel also wants small firms to face fewer regulations, and hit out at Vince Cable’s abilities as business secretary.
Almost two-thirds of respondents to our Voice of the City panel, run jointly with PoliticsHome, said replacing unfair dismissal rules with compensated no fault dismissal, where an employer can sack an employee by giving them a one-off severance payment, is likely to boost growth. Only 31 per cent said it was unlikely to boost growth.
However, 63 per cent said the change would be politically unpopular. Seventy-two per cent said excluding firms with fewer than five workers from being subject to the auto-enrolment pension scheme would boost growth, while 23 per cent said this was unlikely.
Thirty-eight per cent said such a move would prove politically popular, while 28 per cent thought it would be unpopular – though 73 per cent say it will prove politically unpopular, while just eight per cent said it would be popular.
Extending the qualifying period for unfair dismissal from one year to two was deemed the least good for growth, with a net balance of eight per cent saying it would not help.
The City panel also strongly backed Beecroft’s argument that Vince Cable “is a socialist”, with 74 per cent agreeing with his statement that “I think people find it very odd that Cable is in charge of business and yet appears to do very little to support business”. Just 21 per cent disagreed.