Newsletter - February 2008

In this edition:

• Extra funding to help early resolution of workplace disputes
• Darling fixes date for 2008 Budget
• Businesses failing to protect consumer data
• FSB in final plea ahead of 2008 Budget
• British businesses feel the pinch of ‘bureaucratic burden'
• Cheque use in rapid rate of decline

Extra funding to help early resolution of workplace disputes

New measures aimed at simplifying the resolution of workplace disputes are to be unveiled by the Government as part of a review of UK employment law.

Employment Relations Minister, Pat McFadden, is expected to announce a £37 million cash boost for employment body Acas , in a bid to improve its advisory services and enable more disputes to be resolved at an early stage.

By preventing the unnecessary referral of workplace disputes to a tribunal, the Government estimates that businesses and employees will save more than £175m every year.

Commenting on the proposed revisions, Macfadden said: ‘We want to move from the current overly rigid and legalistic process to one where there is more conciliation between employers and employees.

‘This new system will strike a balance between ensuring workers can protect their rights through employment tribunals while helping them to resolve disputes as early as possible.'

Meanwhile Ed Sweeney, chair of Acas , has welcomed the Government's proposed revisions. ‘This new investment will enable us to increase our effectiveness and spread the benefits of good employment relations more widely,' he said.

‘I am delighted by this news and BERR's recognition of the unique and valuable role that we play.'

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Darling fixes date for 2008 Budget

Chancellor Alistair Darling will deliver his first Budget statement to the House of Commons on 12 March 2008, the Treasury has announced.

With Britain feeling the strain of a global credit crunch, volatile stock markets and falling house prices, many will be watching this year's Budget with bated breath.

The Chancellor has already warned that the gloomy economic outlook is likely to give policymakers a ‘challenging year,' whilst continuing uncertainty over troubled lender Northern Rock will only add to the mounting pressures for Darling.

Meanwhile, experts are suggesting that the Chancellor will need to consider the possibility of a General Election, which is widely expected to be held in Spring 2009, when drafting this year's Budget.

Darling's Budget, which is scheduled to commence at 12.30pm, will be his first since taking over from his predecessor Gordon Brown.

For all the latest Budget news and information, make sure you visit our website regularly – we will be publishing a comprehensive summary of the announcements.

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Businesses failing to protect consumer data

Many businesses are not taking adequate security measures to protect the personal details of their consumers, according to new research.

A recent survey by a major professional body has revealed that around 80% of firms in the consumer sector do not have a formal IT security strategy in place, whilst 86% of enterprises have not taken action to understand where and how confidential data is stored.

The findings follow a string of high-profile cases in which classified information has been mislaid. With many now raising serious questions over the security of their personal details, these latest results will do little to quash growing public concern.

A spokesperson for the company that carried out the research said: ‘Retail companies are holding greater and greater amounts of customer data – from purchasing patterns recorded on customer loyalty cards, to financial information from credit cards.

‘Whilst this helps sales and marketing and can deliver valuable market and customer intelligence, it may also increase vulnerability to data theft.'

The spokesperson went on to add: ‘Worryingly, despite legislation and standards such as the Data Protection Act and the Payment Card Industry Data Security Standard (PCI DSS), only 13% of businesses had performed an inventory of personal and cardholder data - the first step in protecting data.'

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FSB in final plea ahead of 2008 Budget

Britain 's largest business organisation has urged the Chancellor to give special consideration to the interests of small firms ahead of Budget day this March.

In its annual submission to the Treasury, the Federation of Small Businesses (FSB) has asked the Government to ‘ lay off' smaller enterprises, following a ‘turbulent' year for business owners across the country.

‘The past 12 months have seen small businesses receive a series of harsh body-blows from which they are still trying to recover,' said FSB chairman, John Wright.

‘More hindrance will only see them, and the UK , shoved further backwards.' 

The FSB is recommending that the Chancellor abandon plans to raise the cost of fuel and reconsider his proposed reforms on ‘income shifting' in order to restore small business confidence in the Government.

‘The year has already begun with the threat of a recession which is difficult enough for small businesses to deal with, without having to contend with more obstacles put in the way by the Government,' Mr Wright continued.

‘This wilting relationship between small businesses and the Government needs to be reinvigorated and 12 March will announce whether Spring is in the air or whether frosty relations continue.'

For all the latest Budget news and information, make sure you visit our website regularly - we will be publishing a comprehensive summary of the announcements.

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British businesses feel the pinch of ‘bureaucratic burden'

British businesses are experiencing a signifcant financial ‘burden' as a result of new regulations introduced since 1998, according to new research by the British Chambers of Commerce (BCC).

The BCC ‘Burdens Barometer,' which measures the financial implications of legislation introduced by the Government, has revealed that the cumulative cost of new regulations for UK businesses increased by £10 billion in the last year, taking the total figure to almost £66bn.

The BCC is now urging the Government to carry out a review of two of the ‘top ten burdens' – the Data Protection Act and the Flexible Working Regulations 2002.

‘The success of the Government's drive for better regulation must be judged on the extent to which the UK 's regulatory burden has been reduced,' said Sally Low, director of policy at the BCC.

‘On this basis the Government's record does not stand up to scrutiny.'

However, for the first time since the study began, three new regulations, including the Fire Regulatory Reform Order, have been found to provide businesses an unprecedented annual saving of around £67 million.

Whilst many view this as a step in the right direction, Professor Francis Chittenden from the Manchester Business School , claims that more must be done to curb the spiraling cost of new legislation for UK enterprises.

‘The annual costs of regulation are still rising and Government must deliver much more if its promises to business are to be realised ,' he said.

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Cheque use in rapid rate of decline

The number of people using cheques decreased dramatically in 2007, according to latest figures released by the banking sector.

The Association of Payment Clearing Services ( Apacs ) recorded a 9% reduction in the volume of cheques in circulation, taking last year's total figure to 1.6 billion.

Apacs claim this is the fastest rate of decline since cheque use began to fall in 1991.

With debit cards now the preferred method of payment, experts are predicting the cheque will eventually fade into the depths of banking history.

Many retailers stopped accepting cheques in 2007, whilst supermarket giant Tesco is preparing to phase them out later this year.

Meanwhile, utility providers have faced fierce criticism for attempting to deter customers from using cheques by offering a discount to those paying by direct debit.

In November last year new rules came into effect to guarantee cheque payment within six days, as part of a drive by the banking industry to clarify the cheque clearing process.

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