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19th May 2005, Page 38
19th May 2005
Page 38
Page 38, 19th May 2005 — Forward gear
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With Labour back in power, what legislation can business expect in the near future? Patric Cunnane lists the changes.

Employment legislation remains a key area for Labour with its claim that more Britons are in work than ever before, giving the UK the highest employment rate in the 07 group of industrialised nations.

As part of its programme the government has accepted the recommendations of the Low Pay Commission. It is raising the minimum wage to £5.05 from October 2005, and to £5.35 from October 2006.

Skills at work is also being given a high priority, with the government promising several initiatives. These include a new national programme working with employers to ensure that employees who did not reach GCSE standard (level 2) at school get time off for training to this level.

In addition, there will be a partnership with employers to fund workplace training at level 3 (technicians). A Sector Skills Council will decide on the training strategy for each area, and set up partnerships with trade unions to boost workplace training.

Opening the post Market liberalisation of postal services continues to be introduced under the Postal Services Act 2000.This will increasingly allow alternative carriers to offer postal services in competition with the Royal Mail.

To cut red tape costs to businesses the government says it will "rationalise business inspections". In addition, the merger of Inland Revenue and Customs & Excise will cut the administrative costs of tax compliance for small businesses.

Further support for small businesses will come through Business Link, which offers help to start-ups and gives small firms access to coaching and support. The government also says it will tackle barriers to financing small and growing businesses, "especially in deprived areas".


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