Political Monitor

Excerpt from Political Monitor for APSCO for the week 17/5/2010

What's being said in Government

Coalition introduces business reforms

This week the Conservative / Liberal Democrat coalition unveiled their plan for Government. Included in the document was a commitment to review IR35. The Government commitment says:

"We will review IR35, as part of a wholesale review of all small business taxation, and seek to replace it with simpler measures that prevent tax avoidance but do not place undue administrative burdens or uncertainty on the self-employed, or restrict labour market flexibility."

Other coalition commitments:

Review employment and workplace laws, for employers and employees, to ensure they maximise flexibility for both parties
Introducing a "one-in, one-out? rule whereby no new regulation is brought in without other regulation being cut by a greater amount.
Find a practical way to make small business rate relief automatic
End the culture of "tick-box? regulation, and instead target inspections on high-risk organisations through co-regulation and improving professional standards
Reform the corporate tax system by simplifying reliefs and allowances
End the "gold-plating? of EU rules, so that British businesses are not disadvantaged relative to their European competitors

Chancellor George Osborne promises business tax reform

UK Chancellor of the Exchequer George Osborne has told the CBI's annual dinner that the government is committed to lower and simpler corporate tax rates. He said that in next month's Budget he wanted to set out a "five year road for a big reform of corporation tax".

As well as lower rates and a simpler system, he wanted to change rules which he said had "driven business overseas".

Referring to reform of the Controlled Foreign Companies rules, he said that the aim was to encourage multinational firms to come to the UK, not leave it.

"We will reform the corporate tax system by simplifying reliefs and allowances, and tackling avoidance, in order to reduce headline rates," said Mr Osborne.

"Our aim is to create the most competitive corporate tax regime in the G20, while protecting manufacturing industries".

What stakeholders are saying

CBI predicts skilled worker gap as recovery takes hold

Employers fear that they will not be able to find enough highly-skilled workers, according to research published by the CBI. It says that demand for these types of workers will rise with the recovery, but half of employers think that they will not be able to find the right people. They surveyed almost 700 managers across a range of companies, who together employ 2.4 million people.

They fear that the right type of graduates will not be available to meet business
demands. But even getting people with the suitable 'A' levels was a worry for a third of
businesses.

All insights