Latest news with #InstituteOfDirectors
Yahoo
4 hours ago
- Business
- Yahoo
Rayner's workers' rights bill will damage growth, warn bosses
Angela Rayner's radical shake-up of workers' rights will hurt economic growth, bosses have warned, as companies prepare to slash hiring and curb investment. More than seven in 10 business leaders believe the Government's Employment Rights Bill will have a negative impact on the country's economy, according to a survey carried out by the Institute of Directors (IoD). Nearly half said they would be less likely to hire new staff as a result of the reforms to workers' rights. The warning will raise alarm bells for the Chancellor who has said that restoring economic growth is her priority. It threatens to deepen tensions between Ms Reeves and the Deputy Prime Minister, who is overseeing the workers' rights reforms. The pair have already clashed over the direction of economic policy, with a leaked memo recently revealing Ms Rayner was pressing the Chancellor to pursue tax rises instead of spending cuts. Under the workers' rights reforms, employees will be able to claim sick pay from the first day of their illness, instead of the fourth. The Bill will also extend the powers of unions in the workplace, making it easier for trade groups to organise strikes by weakening the thresholds currently needed to trigger a walkout. Sir Keir Starmer previously made the shake-up, dubbed Labour's 'new deal for working people', as a core part of his manifesto in the lead-up to his victory in the general election. However, it has sparked concern from business chiefs. The survey by the IoD found that more than half (52pc) of company bosses said they would be more likely to invest in automation as a result of the Bill. A quarter of business leaders polled said the Bill made it likely that they would make redundancies in a further blow to the labour market. The IoD, the so-called 'bosses' union', represents 20,000 business leaders across the country, ranging from entrepreneurial small ventures to major corporations. Already, many of those businesses have reported a slowdown in hiring since the Chancellor announced an increase in employers' National Insurance contributions and the minimum wage in the autumn Budget. The rise in labour costs has caused many businesses to cut jobs or scrap hiring plans. Alex Hall-Chen, a principal policy adviser for employment at the IoD, said: 'Government has yet to show that it is listening to the concerns of business about the potential unintended consequences of the Bill as it is currently drafted. 'If there is a silver lining, it is that more employers will invest in automation and other measures which may improve the UK's stagnating productivity levels.' The IoD has called on the Government to make targeted changes to the Bill, which it believes would soften the negative impact of the reforms on hiring. One of its proposed changes includes keeping the existing thresholds for statutory recognition of trade unions. Andrew Griffith, the shadow business secretary, said: 'If Labour ministers had worked in business they would know their choices mean that British workers will lose their jobs to robots and foreign workers. 'Whilst all Labour governments leave unemployment higher than they found it, this time they are actually passing laws to guarantee it.' The warning over the worker rights reforms comes after MPs warned that Britain's high energy bills and poorly coordinated efforts to fund business growth was hitting growth and prosperity. MPs on the business and trade committee said: 'The UK's high electricity prices are damaging the ability of UK businesses to compete, attract investment and decarbonise.' It pointed to evidence from Nissan that the company's Sunderland plant has higher energy bills than any of its other car factories in the world. Liam Byrne, chairman of the committee, said: 'The evidence we've heard from the nation's leading industrialists, scientists, economists and trade unionists is that this moment of history will be lost if the Chancellor's new investment is not matched by a re-making of the British state for a new economic era.' The MPs also called on the Chancellor to act to stop many of the best entrepreneurs from leaving the country for lack of funding to support their rapidly growing businesses. A government spokesman said: 'We've consulted extensively with business on our proposals, and we will continue to work closely with employers to ensure new laws work for them while putting money back into the pockets of working people.' Responding to the select committee report, a government spokesman said ministers were working on 'creating the best possible conditions for the private sector to thrive.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
BBC News
3 days ago
- Business
- BBC News
Jersey businesses team up with mental health charity
Two business organisations in Jersey have teamed up with a mental health charity to address workplace mental health issues. The Jersey Chamber of Commerce and the Institute of Directors (IoD) are working with the Mind Jersey charity to support staff. The president of the Chamber of Commerce, Lee Madden, said that by "investing in training and raising awareness" he hoped "that all members are equipped to recognise and respond to mental health concerns or suicidal thoughts". The training included suicide awareness, mental health awareness and first aid for mental health accredited courses. The initiative offers members of both organisations, 50% off the cost of training with the charity. Mind Jersey is also inviting all HR managers who are members of the IoD or whose employer is a member of the Chamber of Commerce to a free mental health awareness session in Madden said he had lost colleagues and recognised that as a business leader he had a responsibility for the "well-being of colleagues and employees". Alex Ruddy, chair of the Institute of Directors said that she hopes that "members from both organisations avail themselves of the training".
Bloomberg
5 days ago
- Business
- Bloomberg
Confidence Among UK Directors Rebounds to Pre-Budget High
UK business confidence has recovered to levels last seen before Labour's budget in October as investment intentions pick up but lingering fears of a global downturn continue to weigh on sentiment, according to the Institute of Directors. The business group's survey of 483 directors showed optimism returning despite the £26 billion payroll tax that came into force last month and ongoing trade uncertainty. But IOD Chief Economist Anna Leach urged the government to stick to tough spending plans at next week's review to avoid more damaging tax hikes.
Times
13-05-2025
- Business
- Times
Immigration reforms risk harming economy, businesses warn
The government's immigration reforms will damage the economy if they are not accompanied by an urgent overhaul of the country's 'fundamentally flawed' approach to training, business groups have warned. The Institute of Directors said Sir Keir Starmer's 'comprehensive plan' to reduce immigration significantly would raise further concerns 'for the many employers already struggling to access the skills they need'. Alex Hall-Chen, principal policy adviser for skills and employment at the group, said the plans set out by the prime minister on Monday 'risk damaging already fragile economic growth by further limiting employers' ability to fill urgent skills gaps'. She added: 'For this strategy to work, government must deliver on its pledge to more effectively link the skills and immigration systems and incentivise employers to invest
Daily Mail
13-05-2025
- Business
- Daily Mail
LIVE BUSINESS LIVE: Unemployment hits 4.5%; Retailers enjoy warm weather; Marston's returns to profit
UK unemployment rose to 4.5 per cent in the first three months of the year, up from 4.4 per cent in the previous quarter and the highest since the third quarter of 2021, fresh data from the Office for National Statistics shows. The ONS also said average weekly earnings, excluding bonuses, rose by 5.6 per cent year-on-year over the first quarter, just under economist forecasts of 5.7 per cent but keeping the pressure on the overall rate of inflation. The FTSE 100 will open at 8am. Among the companies with reports and trading updates today are Marston's, IQE and Wickes. Read the Tuesday 13 May Business Live blog below. > If you are using our app or a third-party site click here to read Business Live 06:47 IoD: 'The business case for hiring has been weakened by a perfect storm' Alex Hall-Chen, principal policy advisor for employment at the Institute of Directors: 'Today's figures indicate declining employer demand for labour in the UK job market, with the number of payrolled employees decreasing on the month by 0.1% and vacancies falling by 42,000 on the quarter. 'The business case for hiring has been weakened by a perfect storm of last month's increased employer National Insurance Contributions and above-inflation increases to the minimum wage, alongside a wave of measures in the Employment Rights Bill which will make hiring staff riskier and costlier. 'If the government is to achieve its aim of an 80% employment rate, it must take urgent action to restore business confidence in hiring. We urge the government to support targeted changes to the Employment Rights Bill which would ensure that the Bill works for both businesses and employees.' Fall in payrolls and vacancies gathers pace as Rachel Reeves' NICs raid hits - with unemployment nudging up Fall in payrolls and vacancies gathers pace as NICs raid hits Numbers on payrolls were down 33,000 in April according to early estimates, having dropped 106,000 in the past year to 30.3million.
