The main changes which affect the business activity of the UK

• Fuel duty increase of 3p per litre planned for January 2012 has been delayed until August 2012
• Corporation tax will fall to 25% in April 2012
• Business rate holiday relief for small firms will be extended to April 2013
• £1bn will be made available to subsidise six month placements for young people
• Infrastructure spending to be supported by unlocking , up to , £20bn investment from pension funds
• Go ahead for 35 road & rail projects across England
• Crediting Easing ( rebranded as National Loan Guarantee scheme ) to underwrite low interest loans for small/medium firms

Other significant changes will affect:-

• Pensions – State pension up 5.2% , April 2012
• Right to buy council housing by occupants , with up to 50% discount
• Rail fare increases limited to inflation plus 1%
• Public sector pay awards limited to 1% for each of the next 2 years

The Key Proposals

• Increase the qualifying period for unfair dismissal claims from one to two years
• Introduction of fees for lodging Tribunal claims, Ministry of Justice to publish a consultation paper on the introduction of fees
• All employment disputes would be required to go to ACAS before proceeding to tribunal
• Micro-business ( organisations with fewer than 10 employees) would be free to use ‘Compensated no fault dismissal system’
• The proposals will examine if the 90 day minimum consultation for collective redundancies is a burden on good business planning

The Key Benefits

• The proposed changes seeks to encourage disputes to be resolved early before reaching the tribunal system
• Enable businesses to feel more confident about hiring staff
• Create time for relationships to get established , not to become a charter for businesses to sack people
• Government estimates that the proposed changes will result in, between , 3,700 & 4,700 fewer unfair dismissal claims per year
• The government expect that the changes will deliver £40m benefit to business per year

Keep watching our news to get updates on the progress of these proposed changes and other business news.