PressRelease
Forimmediate release
Thursday3 April 2003
UKBUSINESS FACES BLACK SUNDAY,
CLAIMS IoD
The combination ofincreased National Insurance Contributions, changes to tax credits and theextension of family friendly employment legislation, which all come into effecton Sunday 6 April, will certainly make the date a black day for business, theInstitute of Directors (IoD) claimed today.
Launching a policypaper - 6th April: A Black Dayfor Business - Head of Policy at the IoD, Ruth Lea, said:
Since 1997 businesshas faced a flood of new costly, distracting and time-consuming red tape and anever-increasing tax burden. All this makes it more difficult to run businessesand undermines competitiveness. But the situation seems to be getting worserather than better and Sunday 6 April will indeed be a black day for business,when it will be faced by a triple whammy of extra regulations and higher taxes.
The extensions tofamily friendly policies, including the right for parents to request flexibleworking patterns, may seem progressive but they will hurt businesses, causeresentment in the workplace and are redolent of discredited 1970s feministideology. The tinkering changes to the tax credits will frustrate many abusinessperson, struggling with the difficult economic climate. Finally, thehigher employers National Insurance Contributions can only add to businessescost base and the fact that our add-on costs are still lower than on theContinent will provide no comfort. Two wrongs do not make a right and do wereally want to go down the same road as Germany? I think not.
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According to the findingsof an IoD survey published last month, the National Insurance increases, due tocome into effect on Sunday 6 April, are of particular concern with overthree-quarters of businesses saying they will have to take action to absorb thecost. This includes reducing staff, curtailing future recruitment and holdingdown wage increases. Only 23% of employers of the survey said they would absorbthe cost in full.
Contesting the needfor the introduction of more 'work-life balance' legislation, the IoD said goodemployers were already aware of the business benefits of accommodating theiremployees wishes for flexible working practices.
The IoD pointed outthat at present 41% of working women in Britain work part-time compared with anaverage of 28% in the EU (only 22% in Sweden). Moreover, 31% of women withdependent children already have flexible working patterns including flexitime,term-time working and job sharing.
Ruth Lea, said:
"The measures already taken by employers to accommodate the flexibleworking needs of their workforce are laudable and are to be encouraged. Thesemeasures have all been introduced on a voluntary basis. British employers areahead of the 'work-life balance' agenda. More legislation is quite simplyunwarranted."
Ends 3.4.03 No.157
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Notes to Editors:
1 Copies of 6th April: A Black Day forBusiness are available from the IoDPress Office.
2. Other relevant policy papers include Budget Survey 2003 and TheWork-Life Balance. and all that, both are also available from the PressOffice or can be download from www.iod.com
3. The IoD(Institute of Directors) is a non-party political independent organisation witharound 55,000 members. In addition to its wide range of business services, theIoD provides an effective voice to represent the interests of its members togovernment and key opinion-formers. It also brings the experience of businessleaders to bear on the conduct of public affairs.
Contact Points:
Ruth Lea, Head of thePolicy Unit, tel: 020 7451 3291
Richard Taylor, PressOfficer, tel: 020 7451 3264
mobile and out of hours: 07721 734886
David Marshall,Director of Public Affairs, tel: 020 7451 3263
mobile and outof hours: 0776 4883420
email: press@iod.com
web: www.iod.com