Political update

What's being said in Government

Government proposes new paternity & maternity rules

Legislation to give parents more flexibility in how they use maternity and paternity leave will be introduced under new Government plans.

New fathers will be able to take advantage of additional paternity leave and pay during the second six months of the child's life, if the mother wishes to return to work with maternity leave outstanding. The changes will be introduced for parents of children due on or after 3 April 2011.

Business Minister Pat McFadden said:

"The balance between work and family life has changed for the better in the past decade and these changes will give parents the chance to share their leave and will give families a useful element of flexibility and choice.

The move comes as the Government publishes its response to a consultation on the subject held at the end of 2009. The regulations will mean:

• Fathers will be entitled to up to six months extra leave, which can be taken once the mother has returned to work;
• This new provision will be available during the second six months of the child's life, giving parents the option of dividing a period of paid leave entitlement between them
• Some of the leave may be paid if taken during the mother's 39 week maternity pay period. This would be paid at the same rate as Statutory Maternity Pay (currently £123.06);
• Parents will be required to "self certify" by providing details of their eligibility to their employer. Employers and HMRC will both be able to carry out further checks of entitlement if necessary.

Theresa May, Conservative Shadow Minister for Women and Equality, said "The truth is that this announcement is a pale imitation of our own proposals".

She said she hoped that the Government has finally followed the Conservative lead on accepting the need for parents to have more flexibility in how they take their paid maternity leave, but expressed doubts about the pledge.

The Government has tabled the regulations for Parliament to consider as soon as possible. They will be debated and approved by each House before they can be implemented. Subject to this, the Government intends that the law be in force by April 2010 and have effect for parents of children due on or after 3 April 2011.

Government publishes proposals to enhance UK attractiveness to multinationals

HM Treasury has published a discussion document on proposals for reforming the UK tax treatment of controlled foreign companies (CFCs). The proposals set out in the discussion document are intended to enhance the competitiveness of the UK, while providing adequate protection of the UK tax base. The discussion document sets out the overarching framework of the new rules and proposals for how monetary assets and intellectual property could be treated.

Financial Secretary to the Treasury Stephen Timms said: "Modernising these rules is crucially important to maintaining and enhancing the UK's attractiveness as a base for global business. This report, drawing on our discussions with businesses, is a key step in designing a system that better recognises the way multinationals operate today, while protecting our tax base."

A full discussion can be found at:
http://www.hm-treasury.gov.uk/controlled_foreign_companies.htm

Minister calls for wider flexible working rights

It has been reported that Ministers are considering giving all employees the right to ask for flexible working hours "from the beginning" of a new job as part of plans to encourage a fundamental shift in working habits.

The work and pensions secretary, Yvette Cooper, said that her office is working with employers and organisations such as the federation of small businesses to draw up new ways of supporting men as well as women and non-parents as well as parents working more flexible hours.

The current rules are limited to parents of children under 16 and carers, and Cooper wants to extend them. "You want people to offer flexible working from the beginning and we need to look again at how the legislation can support different ways of doing that," she said.

An ambition to change working patterns may be contained in Labour's general election manifesto, although Lord Mandelson, the business secretary, argued against an extension of flexible working in October 2008 when the UK was entering recession.

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