Tag: UK Goverment

Workers backed by new employment protections

  • New legislation, including three Government backed cross party Acts, come into force today
  • This comes alongside tax cuts of £900 a year for the average worker, an increase to the National Living Wage, and the introduction of free childcare for working parents

Pregnant women and new parents will now receive special treatment in a redundancy situation, as a suite of new laws are introduced – delivering the Government’s plan to support families and back hardworking Brits.

New laws will protect workers by strengthening existing redundancy protections to cover pregnancy and a period of time after parents return to work.

The Government-backed package of Acts will also boost support to vulnerable workers offering greater flexibility and confidence to workers and businesses – to help galvanise productivity, help grow the economy and tackle inactivity.

Families today receive new employment protections, including redundancy protections for pregnant women and new parents and a new leave entitlement for unpaid carers. In addition, there will be new flexible paternity leave and pay for parents of babies due on or after 6 April. 

Against a backdrop of skills and labour shortages, these measures will help businesses to attract and retain talented staff. The measures also support groups more likely to fall out of the workforce, such as parents and disabled people, enabling them to thrive in the workplace.

This comes alongside measures to make work pay – cutting taxes by £900 a year for the average worker, increasing the National Living Wage from £10.42 an hour to £11.44, and introducing free childcare for working parents worth £6,900 a year.

Business Minister, Kevin Hollinrake said:

Whether you’re a new parent trying to juggle work commitments with a newborn or a pregnant woman balancing the pressures of work and life, or looking after a disabled or elderly family member while working, these new laws will give families greater security and flexibility.

From childcare commitments to hospital appointments, the measures coming in today means more flexibility over where and when you work,   supporting workers across the UK.

These measures are good business sense too, helping firms to attract more talent, increase retention and improve workforce diversity.

Protecting and enhancing workers’ rights whilst supporting businesses to grow remains a priority for this government and a dynamic labour helps to drive up wages, employment and economic growth.

This runs alongside new laws that give workers across Britain more flexibility over where and when they work, unless there are business reasons not to, as the Employment Relations (Flexible Working) Act comes into force.

This means employees now have the right to request reasonable flexible working from their first day of employment, with those requests subject to business approval, and delivers on a 2019 Manifesto commitment to encourage flexible working.

In addition, new measures require employers to consult with their employee before rejecting a request for flexible working. The employee will have the right to two requests a year – with employers needing to respond within two months, down from three.

Minister for Employment, Jo Churchill said:

We know that for some people balancing work with caring responsibilities can be a challenge. To help them and employers the changes we are announcing today will support even more people to find a job that works with their commitments.

Being in work is the best way to get on and our £2.5bn Back to Work Plan offers unprecedented support to help more than a million people find, stay and succeed in work.

Workers will from today benefit from the following new protections:

  • Additional redundancy protection for pregnant women and new parents with the extension of existing redundancy protections to cover pregnancy and a period of time after parents return to work.
  • A new entitlement to a week of leave for unpaid carers who are caring for a dependant with a long-term care need. This will enable carers to better balance their caring and work responsibilities, supporting them to remain in employment.
  • Changes to Paternity Leave introduce greater flexibility in how and when the leave can be taken.  It can now be taken at any time in the first year of the child’s life and it no longer needs to be taken in a single block of one or two weeks
  • An improved flexible working entitlement, supported by a revised Acas Statutory Code of Practice, requiring employers to consider and discuss any requests made by their employee – who will have the right to two requests a year – within two months of a request, down from three.

Joeli Brearley, Founder and CEO, Pregnant Then Screwed, said:

A significant number of new mums are pushed out of their job because they are seen as less committed to their role or a burden to business, the impact can be catastrophic for women and their families.

Extending redundancy protections to pregnant women and parents returning from leave is a vital step towards reducing pregnancy and maternity discrimination.

These new laws will help to increase workforce participation, protect vulnerable workers, and level the playing field by ensuring unscrupulous businesses don’t have a competitive advantage and deliver on our priority to grow the economy.

As well as clear benefits to workers, the measures are also good for British business. Research has shown companies that embrace flexible working can attract more talent, improve staff motivation and reduce staff turnover – boosting their business’s productivity and competitiveness.

CIPD research shows that 6 percent of employees changed jobs last year specifically due to a lack of flexible options and 12 percent left their profession altogether due to a lack of flexibility within the sector. This represents almost 2 and 4 million workers respectively.

Peter Cheese, chief executive of the CIPD, said:

The CIPD has been pleased to feed into the development of these legislative changes which will benefit millions of workers and enable them to better balance their work and home lives, and responsibilities. 

At the same time, these changes will support employers’ efforts to recruit and retain a more diverse workforce by providing more flexibility and support to people with different needs due to ill health or caring responsibilities for example.

This package of new laws builds on the UK’s flexible and dynamic labour market and gives businesses the confidence to create jobs and invest in their workforce, allowing them to generate long-term economic growth.

Chancellor backs British business with pension fund reforms

  • Pension funds to publicly disclosure how much they invest in UK businesses Vs those overseas.
  • Schemes performing poorly for savers won’t be allowed to take on new business from employers.
  • Changes are part of the government’s plan to improve outcomes for savers and consolidate the pensions market.

The Chancellor has today (2 March) announced pension fund reforms as a further step in the government’s plan to boost British business and increase returns for savers. This includes requirements for Defined Contribution (DC) pension funds to publicly disclosure their level of investment in the UK.

The government’s auto enrolment rollout has driven a huge growth in the amount of investment entering UK pension funds, from less than £90 billion in 2012 to around £116 billion in 2022. However, the disclosure requirements for DC pension funds are currently inconsistent across the market and do not require a breakdown of UK investments, sometimes making it difficult for policymakers and savers to understand where this money is invested.

By ensuring pension funds publicly disclose where they invest and the returns they offer, it will make it possible for employers and savers to compare schemes and make informed choices. The government is embarking on Value for Money (VFM) pension fund reforms to improve outcomes for savers and consolidate the DC pensions market. The reforms will ensure that pension managers are focused on securing good returns for savers. 

Under the plans:  

  • By 2027 DC pension funds across the market will disclose their levels of investment in British businesses, as well as their costs and net investment returns. 
  • Pension funds will be required to publicly compare their performance data against competitor schemes, including at least two schemes managing at least £10 billion in assets. 
  • Schemes performing poorly for savers won’t be allowed to take on new business from employers, with The Pensions Regulator (TPR) and Financial Conduct Authority (FCA) having a full range of intervention powers. 

The plans are subject to a consultation by the Financial Conduct Authority and build on the Government’s Mansion House compact, that encouraged pension funds to invest at least 5% of their assets in unlisted equity. 

Chancellor Jeremy Hunt said: “We have already started on a path to drive growth, unlock capital for our most promising companies and improve outcomes for savers – and these new rules mean employers and savers can see how their money is invested and how the returns compare to other schemes.

“British pension funds appear to contribute less to the UK economy than international counterparts do as they invest less in our domestic businesses. These requirements will help focus minds on how to improve overall returns and outcomes for savers.”

Secretary of State for Work and Pensions, Mel Stride MP, said: “The incredible success of automatic enrolment has opened up a huge opportunity to grow the economy, boost British businesses and fuel our futures. It has helped us transform the pensions landscape over the last decade.  

“And our Value for Money framework will take this one step further, focusing pension managers on their number one priority – securing the best possible returns for savers – as well as providing a boost to the wider economy.”  

Julia Hoggett, CEO of London Stock Exchange plc and Chair of the Capital Markets Industry Taskforce, said: “Pension holders should know how much is being invested in equities in their home market.

“Investing in UK companies ultimately benefits those companies and the returns they are delivering, which supports the economy and the country in which pension holders live, to everyone’s benefit and in everyone’s interest.” 

James Ashton, Quoted Companies Alliance chief executive, said: “There is huge upside to aligning the UK’s financial assets with innovative homegrown ventures that could be tomorrow’s world beaters.

“We welcome these new disclosures and hope they are the first step to many UK pension funds discovering the numerous high-potential companies whose shares are traded on their doorstep.” 

Chris Hayward, Policy Chairman of the City of London Corporation, said: “The Mansion House Compact aims to channel long-term capital from pension funds into growth companies.

“It will support high-growth companies to start, scale and stay in the UK. We welcome the Government’s action to support this objective which will turn the dial to drive investment into UK businesses. It is vital that the pension ecosystem focusses on value for money and long-term returns for savers.” 

Middle East Minister embarks on Gulf tour ‘to build momentum towards lasting peace and security’

LORD AHMED RETURNS TO MIDDLE EAST

  • Lord (Tariq) Ahmad of Wimbledon returns to the region to meet with key partners to seek long-term solutions to the situation in Israel and Gaza
  • Minister to discuss joint efforts to counter illegal Houthi attacks on international shipping in the Red Sea
  • He will also celebrate strengthened bilateral ties with Gulf allies, following announcement Gulf Nationals are now eligible to apply for the Electronic Travel Authorisation (ETA) scheme

The UK Minister for the Middle East will embark on a tour of the Middle East as the UK seeks to build momentum towards a sustainable, permanent ceasefire in Gaza and lasting stability and security in the region.

Lord Ahmad will arrive in Oman today (Monday) for the first leg of the visit before travelling to Kuwait and then concluding the visit in Saudi Arabia.

The Minister is expected to meet with key figures, including Saudi Arabia’s Vice Foreign Minister, the Secretary General of the Muslim World League as well as Kuwait’s Foreign Minister Ambassador Abdullah Al-Yahya and Oman’s Undersecretary for Political Affairs Sheikh Khalifa Al Harthy.

The Minister will discuss how to ease the desperate humanitarian situation in Gaza, including through an immediate humanitarian pause in fighting leading to a sustainable, permanent ceasefire.

He will also outline the UK’s efforts to counter Houthi attacks on international shipping in the Red Sea and make clear that illegal attacks by the Houthis are completely unacceptable.

Lord Ahmad of Wimbledon, Minister of State for Middle East, said: “We want to see an end to the fighting in Gaza as soon as possible, and it is clear that wider escalation and instability in the region is in nobody’s interests.

“Our engagement with partners in the Middle East, including Oman, Kuwait and Saudi Arabia, is absolutely central to efforts towards achieving a sustainable, permanent ceasefire in Gaza and building wider regional security.”

The 16th session of the UK-Oman Joint Working Group will be co-chaired by Lord Ahmad alongside Oman’s Undersecretary for Political Affairs Sheikh Khalifa Al Harthy.

Meanwhile, in Kuwait, Lord Ahmad will co-chair the twentieth UK-Kuwait Joint Steering Group alongside His Excellency Sheikh Jarrah Jaber Al-Ahmad Al-Sabah, Deputy Minister of Foreign Affairs. Lord Ahmad is also due to meet with the Palestinian Ambassador.

In Saudi Arabia, Lord Ahmad will meet with the Vice Foreign Minister and the Ministry of Hajj and Umrah. 

This visit is the latest in a series of visits to the region by the Minister, including Lebanon, Saudi Arabia and the UAE over the last fortnight.

The Foreign Secretary has recently visited the region multiple times, including Oman and Saudi Arabia to build on the UK’s call for an immediate pause to get aid in and hostages out, then progress towards a sustainable, permanent ceasefire, without a return to destruction, fighting and loss of life.

The Minister will also welcome the UK’s Electronic Travel Authorisation (ETA) scheme which has opened for Gulf Cooperation Council and Jordanian nationals, making travel to the UK smoother and cheaper.

The scheme will allow unlimited visits to the UK over two years.

CAN Ahmed’s latest visit succeed where all other attempts by world leaders have failed? Er … let’s say it’s unlikely. And the body count will continue to rise.

The House of Commons adjourned for February recess on Thursday 8 February and will next sit on Monday 19 February at 2.30pm. 

Joint Statement on additional strikes against the Houthis in Yemen

‘YESTERDAY, at the direction of their respective governments, the militaries of the United States and United Kingdom, with support from Australia, Bahrain, Canada, Denmark, the Netherlands, and New Zealand conducted an additional round of proportionate and necessary strikes against 36 Houthi targets across 13 locations in Yemen in response to the Houthis’ continued attacks against international and commercial shipping as well as naval vessels transiting the Red Sea.

‘These precision strikes are intended to disrupt and degrade the capabilities that the Houthis use to threaten global trade, and the lives of innocent mariners, and are in response to a series of illegal, dangerous, and destabilizing Houthi actions since previous coalition strikes on January 11 and 22, 2024, including the January 27 attack which struck and set ablaze the Marshall Islands-flagged oil tanker M/V Marlin Luanda.

‘Today’s strike specifically targeted sites associated with the Houthis’ deeply buried weapons storage facilities, missile systems and launchers, air defense systems, and radars.

‘The Houthis’ now more than 30 attacks on commercial vessels and naval vessels since mid-November constitute an international challenge. Recognizing the broad consensus of the international community, our coalition of likeminded countries committed to upholding the rules-based order has continued to grow.

‘We remain committed to protecting freedom of navigation and international commerce and holding the Houthis accountable for their illegal and unjustifiable attacks on commercial shipping and naval vessels.

‘Our aim remains to de-escalate tensions and restore stability in the Red Sea but let us reiterate our warning to Houthi leadership: we will not hesitate to continue to defend lives and the free flow of commerce in one of the world’s most critical waterways in the face of continued threats.”

UK DEFENCE AND ARMED FORCES STATEMENT:

On 3 February, Royal Air Force Typhoon FGR4s, supported by Voyager tankers, joined US forces in further deliberate strikes against Houthi locations in Yemen involved in their campaign targeting shipping in the Bab al Mandab and southern Red Sea.

The Typhoons employed Paveway IV precision guided bombs against multiple military targets identified by careful intelligence analysis at three locations. 

At As Salif, due west of Sanaa on the Red Sea coast, our aircraft targeted a ground control station inside a defensive position. This station had been used to control Houthi drones, both attack and reconnaissance types, launched from further inland, operating over the sea against international shipping. 

A second drone ground control station was confirmed to be at Al Munirah, on the same stretch of coastline. As with As Salif, the station provided direct control of reconnaissance and attack drones targeting shipping in the Red Sea, its position on the coast allowing it to maintain the line of sight data links such weapons require to target ships with any accuracy. 

The Typhoons also attacked a significant number of targets at Bani. An initial group of facilities there were successfully struck by the RAF on the night of 11 January, and since then a further set of buildings at the site had been positively confirmed as involved in the Houthi drone and missile operations and were duly targeted on this occasion.

As is standard practice with such operations by the Royal Air Force, the strikes were very carefully planned to ensure minimal risk of civilian casualties, and by bombing at night, any such risks were further mitigated

New tax credits for British film, TV and video game makers start today

  • New and improved tax credit system for film, TV and video game production companies starts from today
  • An extra £42,500 in relief for children’s TV, animated TV and animated film production
  • £5,000 in relief for high-end TV, film or video game production

British film, TV and video game producers will benefit from new, more generous tax credits that start today (1 January 2024).

To maximise the potential of the UK’s cutting-edge production industry and help incubate unique British talent, the government’s Audio-Visual Expenditure Credit and the Video Games Expenditure Credit replace the previous tax reliefs for film, TV and video games.

All companies will receive more tax relief than they did under the previous system, greater flexibility over production decisions and greater clarity about the amount of credit companies can expect to receive.

Nigel Huddleston, Financial Secretary to the Treasury, said: “We are backing the makers of the next Barbie, Happy Valley and Grand Theft Auto with this new, more generous, tax credit system for British production talent.

“The UK is a world leader in creativity, and we want to ensure that continues well into the future by making it easier for British film, TV and video games to thrive.”

Under the new system, a children’s TV production, animated TV production or film with £1 million of qualifying expenditure will receive an additional £42,500 in relief. A high-end TV production, film production or video game will receive £5,000 in relief. To ensure fairness, the uplift in relief for animation will be extended to include animated films as well as TV programmes.

The credits will be calculated directly from a production or game’s qualifying expenditure, instead of being an adjustment to the company’s taxable profit.

Animation and children’s TV productions will be eligible for a higher credit rate of 39%, a rate increase of 5.5% under the previous reliefs. The 34% credit rate for film, high end TV and video games is roughly equivalent to a rate increase of 0.5% under the previous tax reliefs.

The new system applies to the whole of the UK.

The government has listened to feedback from industry that companies will need sufficient time to adapt to the new expenditure credits. For this reason, productions and games in development on 1 April 2025 may continue to use the previous tax reliefs until they end on until 1 April 2027.

The move to reform tax relief for entertainment productions and video games was announced at the Spring Budget in March 2023. The system implemented today was developed hand in glove with the UK entertainment industry, with consultations on both the policy itself and the draft legislation. It is being legislated as part of the Finance Bill 2023-24.

The UK’s creative industry is already worth £126bn and the UK has the largest video game employee base in Europe, at nearly 21,000 by the last estimate.

Today’s new tax credit system is the latest move by UK Government in support for British creative industries. The Chancellor also announced that full-expensing will be made permanent in 2023’s Autumn Statement, helping creative businesses invest for the less by saving them 25p in every £1 they spend on qualifying equipment and machinery.

At Spring Budget 2023, the Chancellor also extended the rates of relief for theatre, orchestra and museums for two additional years to April 2025.

In September last year, coinciding with a visit by the Chancellor Jeremy Hunt to Warner Bros. Studios in Los Angeles, it was announced that the production giant would expand their studio in Leavesden, Hertfordshire, in 2024. The move is expected to create 4,000 new jobs in the UK and contribute more than £200m to the UK economy.

‘A dark day for devolution’?

SETBACK FOR SCOTLAND’S GENDER REFORM PLANS

JUDGES have ruled that the UK Government’s block of Scottish gender legislation was LEGAL.

The Holyrood parliament passed legislation to make it easier for people to change their sex last year, but the UK Government blocked the law, arguing that Scotland’s gender law would impact on equality laws across all countries of the UK

The Scottish Government challenged Westminster’s action through the courts, but yesterday The Court of Session in Edinburgh upheld the UK Government’s decision.

The Scottish Government is studying the detail of the judgement and has yet to make an official statement, but First Minister said the Supreme Court judgement marks ‘a dark day for democracy’.

Scottish Secretary Alister Jack takes a different view, of course.

The Secretary of State for Scotland, Rt Hon Alister Jack MP said: “I welcome the Court’s judgment, which upholds my decision to prevent the Scottish Government’s gender recognition legislation from becoming law.

“I was clear that this legislation would have had adverse effects on the operation of the law as it applies to reserved matters, including on important Great Britain-wide equality protections. 

“Following this latest Court defeat for the Scottish Government, their ministers need to stop wasting taxpayers’ money pursuing needless legal action and focus on the real issues which matter to people in Scotland – such as growing the economy and cutting waiting lists.”

The Scottish Government is unlikely to take Mr Jack’s advice and has 21 days to decide whether to lodge an appeal.

Judiciary of Scotland Judgment Summary

JVT: ‘We are at a tipping point’

The UK’s Deputy Chief Medical Officer Professor Jonathan Van-Tam outlines the current Covid-19 situation:

In our national fight against Covid-19, we are at a tipping point similar to where we were in March; but we can prevent history repeating itself if we all act now.

ONS data show that an estimated 224,000 people have the virus – up from 116,000 last week, hospital admissions for Covid-19 are rising again, as are intensive care admissions. Although the epidemic re-started in younger adult age groups in the last few weeks, there is clear evidence of gradual spread into older age groups in the worst affected areas.

Sadly, just as night follows day, increases in deaths will now follow on in the next few weeks. The good news, is that we are much more certain now that children are usually not badly affected by this virus.

The R for the UK is between 1.2 – 1.5. Roughly this means that every one case generates more than one new case, through onward transmission – so the epidemic grows larger. Every NHS region of England has an R that is well above 1.0, suggesting that widespread increases in transmission continues across the country, not just in the north of England. Scientists estimate that the doubling time in the UK for new infections is between 8 and 16 days and is even faster in some areas.

SAGE is clear that we need to act now.

Winter in the NHS is always a difficult period, and that is why in the first wave our strategy was: “contain, delay, research and mitigate” to push the first wave into Spring. This time it is different as we are now are going into the colder, darker winter months. We are in the middle of a severe pandemic and the seasons are against us. Basically, we are running into a headwind.

The NHS is bracing itself and they will do what they always do, which is work their socks off to help as many people as possible. But we need to be realistic – there is only so much they can do. We all have to help our hard-working NHS staff continue to care for everyone who needs it urgently, and provide as many non-urgent tests, checks and treatments as possible, by helping to stem the rising tide of infections.

People point out that we must not lose sight of the indirect harms of Covid-19. They are absolutely right. We need to keep elective surgeries and non-urgent services open for as long as we can; we need to keep cancer treatment and diagnostic services going; and we need to continue to provide mental health services. And importantly, we need people to come forward for that care when they need it – and we know that, during the first peak, fear of the virus put many off from doing so.

The best way we can do this is to keep the number of Covid-19 cases down. If cases rise dramatically the NHS will need to focus more on dealing with the life threatening situations immediately in front of them; this can mean freeing up staff and space by postponing other non-urgent procedures and treatments. We need to help the NHS by keeping Covid-19 numbers low; and in turn the NHS will be there for us, our families and loved ones.

The principles for how we keep transmission low have not changed. Above all else, if you have Covid-19 symptoms you must self-isolate in line with published guidance and get a test.

At all times, even when you are well, wash your hands regularly, wear a face covering in confined spaces and follow the 2 metre social distancing rules. By keeping our contacts low we reduce the number of opportunities for the virus to spread. I know this is very hard, but it is an unfortunate scientific fact that the virus thrives on humans making social contact with one another.

What I would give to have had the level of data, testing and medical insight we have now back in February and March this year. We now have much-improved testing capabilities, we know in more detail where the disease is, and we have better treatments.

Earlier in the year we were fighting a semi-invisible disease, about which we had little knowledge, and it seeded in the community at great speed. Now we know where it is and how to tackle it – let’s grasp this opportunity and prevent history from repeating itself.

Prime Minister Boris Johnson is expected to announce tougher restrictions for England tomorrow.

£60 million search begins for the next Peppa Pig, Art Attack and Desert Island Discs

The hunt for the next big thing in radio and young people’s television has begun, as applications have now opened for a share of a Government financed £60 million fund set up to provide a boost to the UK’s Radio and Television sector. Continue reading £60 million search begins for the next Peppa Pig, Art Attack and Desert Island Discs