's picture
Posted by Anonymous (not verified) on June 04, 2014

The Government is set to announce a number of measures affecting SMEs, including new rules surrounding late payments and a crackdown on zero-hours contracts.

The CBI said that businesses want to see a focus on better implementation rather than lots of new rules. 

CBI's deputy director-general, Katja Hall said: "With the economic recovery gathering momentum and broadening out, we want the final session of Parliament to help embed growth and job creation for the long-term, delivering prosperity for all. At this stage of a parliament businesses don’t want to see a raft of new legislation."

The Government announced, last week, that businesses will be forced to publish their payment terms in order to be more transparent, but was accused of “ducking the issue” by the Institute of Credit Management. Some had called for fines to be issued or a statutory limit on maximum payment terms.

Hall said: "Growing businesses rely on cash flow and are too often hampered by late payers, so we back a ‘comply or explain’ system for payment terms of more than 60 days."

Furthermore, new rules will force those using zero-hours contracts not to include exclusivity clauses that prevent workers from working for multiple employers.

The Institute of Directors said that this was justified, but that: “The Government must make the case for maintaining labour market flexibility, which has protected jobs through the recession. Furthermore, promoting genuine flexibility throughout the labour market will only become more important as the UK adapts to social and demographic changes.”

Other changes expected to be confirmed today include a crackdown on rogue directors, measures to improve SME access to Government contracts, the creation of a register of beneficial company ownership and increased fines for those who flout minimum wage rules.

It has also been rumoured that the Government will announce plans to force banks to refer rejected business borrowers to alternative funders, a move which banks are said to be against.

 

Image by marsmetn tallahassee

Address

Enterprising Women
150 Minories
London
EC3N 1LS

 

Get in Touch